Blockchain Legal Consulting services in Vietnam

In the era of digital transformation, Blockchain technology is being widely applied globally, and Vietnam is no exception. However, along with this rapid development comes a series of legal challenges that enterprises and investors must face, especially when Vietnam’s legal framework on Blockchain is still incomplete. With over 15 years of experience in the field of information technology law, fintech, and foreign investment, Viet An Law is proud to be a pioneer in providing services of Blockchain legal consulting in Vietnam. We have accompanied many technology enterprises, exchanges and Blockchain projects from the idea stage to actual implementation, ensuring legal compliance and effective risk prevention.

What is Blockchain?

Blockchain is a technology that stores and transmits data in the form of blocks of information (blocks) linked together by encryption, which are distributed and cannot be edited after recording. Each transaction or data is stored in a block and attached to the previous block, forming an immutable, highly secure chain.

When a transaction is made, the information is encrypted and sent to a network of computers. These computers verify the transaction through a consensus mechanism (proof of work, proof of stake, etc.). Once confirmed, the transaction is stored in a block and attached to the previous data chain. The data is distributed throughout the entire network, so it is almost impossible to edit or delete.

Currently, many logistics enterprises in Vietnam have tested the application of Blockchain to trace the origin of goods, help make the transportation process transparent and control fraud. Some large hospitals are also researching the implementation of Blockchain in storing electronic medical records to secure patient information.

Common legal issues related to Blockchain

Vietnam has not yet issued a separate legal document to regulate Blockchain technology. Blockchain activities are subject to regulations from various laws, resulting in overlap and legal gaps.

Relevant legal documents include:

• Civil Code 2015: On civil transactions and property rights.
• Cybersecurity Law 2018: Protecting personal data, preventing cybercrime.
• Law Electronic Transactions (amended in 2023): Supplementing regulations on electronic contracts and digital data.
• Law Anti-Money Laundering 2022: Controlling virtual asset transactions.
• Law on Intellectual Property 2022: Protecting software and digital technology applications.

For example, a Vietnamese fintech company developed a Blockchain-based e-wallet, but due to the lack of clear regulations on internal token issuance, it was required by authorities to temporarily suspend operations pending additional guidance, causing great economic damage and losing the opportunity to reach investors.

Although Blockchain brings many benefits in terms of security and transparency, the decentralised, uneditable and uncontrollable nature of Blockchain poses many legal risks, especially in sensitive areas such as finance, cryptocurrency, and personal data management. Some common risks include:

• No operating license: Crypto exchanges or token issuers are at risk of being fined because they have not been licensed by the State Bank.
• Risk of criminal or administrative prosecution: Many cases related to virtual currency pyramid schemes have been criminally prosecuted due to illegal coin issuance.
• Dispute risk: Smart contracts on Blockchain have not yet been clearly defined in terms of legal value when resolving disputes in court.
• Violation of personal data security: Blockchain stores decentralised data, so if not well controlled, it can violate the Cybersecurity Law.
• Difficulties in tax declaration and financial obligations: Virtual currency, NFT, and token transactions do not have clear tax instructions, leading to the risk of businesses being subject to tax penalties.

For example, at the end of 2023, a Vietnamese startup applying Blockchain to digital real estate management encountered a dispute with investors when the smart contract automatically transferred ownership without a system error control mechanism, leading to complex disputes that could not be recognised by the court.

With complex technical characteristics and unclear legality, enterprises applying Blockchain face many risks regarding:

• Legality of business model.
• Legal recognition of smart contracts.
• Tax obligations, anti-money laundering.
• Protection of intellectual property rights of software and data.

Therefore, enterprises should seek the support of Blockchain legal consulting in Vietnam to build a legal model under regulations; review and draft contracts and terms of use; and receive advice on ways to limit legal risks and represent in resolving disputes that arise.

Services of Blockchain legal consulting in Vietnam by Viet An Law

With the strong development of Blockchain technology in Vietnam and the world, the need to find a reputable legal entity on Blockchain in Vietnam is increasing. Enterprises, individuals, and organisations operating in the fields of financial technology (Fintech), cryptocurrency, digital assets, smart contracts, cryptocurrency exchanges, etc., all face potential legal risks due to the incomplete legal framework and many shortcomings in practical applications.

Viet An Law is proud to be one of the pioneers and has strengths in providing legal consulting services on Blockchain in Vietnam. We have a team of experienced lawyers with a deep understanding of information technology law, electronic transactions and regulations related to digital assets, helping enterprises and investors feel secure in implementing technology projects legally and safely.

Blockchain legal consulting services in Vietnam that Viet An Law is providing include:

• Legal advice on the operating mechanism of Blockchain and related applications such as smart contracts, digital assets, NFTs, DeFi, etc., to ensure compliance with Vietnamese law.
• Legal advice for establishing and operating Blockchain projects: drafting and reviewing cooperation contracts, investment contracts, technology service contracts, digital asset exploitation contracts, terms of use of trading floors, etc.
• Support intellectual property registration procedures for software, Blockchain technology platforms, trademarks, and copyrights related to electronic transactions.
• Consulting on compliance with anti-money laundering and cybersecurity laws when implementing Blockchain projects, especially for businesses issuing tokens, operating cryptocurrency exchanges or providing digital financial intermediary services.
• Represent clients in resolving disputes related to Blockchain contracts, digital asset transactions, and intellectual property rights on digital platforms at competent authorities or commercial arbitration.
• In addition, Viet An Law also provides in-house legal counsel services for technology enterprises, supporting project establishment, consulting, investment, business cooperation, to operation and handling of legal issues arising during the operation process. We are committed to accompanying customers throughout the project life cycle, from ideas to implementation and expansion, helping enterprises minimise legal risks and optimise business strategies.

Viet An Law always strives to promptly update the latest policies and legal regulations on Blockchain technology in Vietnam and internationally to provide accurate, high-quality legal consulting services, suitable for practice and meeting the specific needs of each customer.

If you are looking for the services of Blockchain legal consulting in Vietnam, please contact Luat Viet An immediately for the most timely, in-depth, and effective support!