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VOL. 11, ISSUE 3 (2025)
Addressing AML challenges in Vietnam’s fintech and DEFI ecosystem: Bridging regulatory gaps for financial stability
Authors
Dr. Hai Yen Nguyen
Abstract
The rapid growth of Fintech and Decentralized
Finance (DeFi) platforms in Vietnam has outpaced regulatory updates, creating
significant challenges for anti-money laundering (AML) enforcement. Current
laws lack clear definitions and specific obligations for decentralized transactions
and peer-to-peer lending (P2P lending) platforms, leaving regulatory gaps that
enable money laundering and other illicit activities. Key issues include
inadequate Know-Your-Customer (KYC) requirements and difficulties in monitoring
cross-border decentralized transactions. This paper examines these regulatory
shortcomings and their implications for financial stability. It highlights the
unique risks posed by DeFi and P2P lending platforms and proposes solutions
based on international best practices. Recommendations include clearer legal
definitions for decentralized financial activities, stricter KYC standards, and
advanced monitoring tools to enhance enforcement. Addressing these challenges
will enable Vietnam to strengthen its AML framework while fostering Fintech
innovation. This study contributes to global discussions on balancing
technological advancements and regulatory needs to ensure financial stability.
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Pages:1-6
How to cite this article:
Dr. Hai Yen Nguyen "Addressing AML challenges in Vietnam’s fintech and DEFI ecosystem: Bridging regulatory gaps for financial stability". International Journal of Law, Vol 11, Issue 3, 2025, Pages 1-6
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