The government can regulate businesses but not individuals when it comes to crypto use

Sometimes, it seems that the government forgets that they are public servants, serving every individual in the select country where they function. This means that laws are meant to protect the interest of the citizens at all times.

Of course, due to the nature of delegated power that cannot be immediately taken away, corruption exists in the system and more often than not, causes said government to neglect the interest of citizens for their own personal gains.

Through blockchain and crypto assets, things are going to change in a lot of ways.

Governments around the world have taken several measures to regulate crypto and what appears to be unique to all approaches is many of them are taking the “incentive” route, something that's bound to become common in the regulation of crypto(digital assets), blockchain and artificial intelligence.

Vietnam legalizes crypto under new digital technology law

The National Assembly of Vietnam approved the Law on Digital Technology Industry on June 14, bringing digital assets under regulatory oversight.

The legislation, set to take effect on Jan. 1, 2026, recognizes crypto assets and lays the groundwork for broader digital innovation across the country, according to reports from local media outlets.

The law classifies digital assets into two categories, including virtual assets and crypto assets. While both rely on encryption or digital technologies for validation and transfer, neither includes securities, digital fiat currencies, or other financial instruments.

Beyond crypto, the legislation signals Vietnam’s ambition to become a digital tech hub.

It introduces sweeping incentives for enterprises working in AI, semiconductors, and digital infrastructure. These include tax breaks, land-use benefits, and R&D support, particularly for firms building core technologies like chip design and AI data centers.

Regional governments are directed to support workforce development through subsidies and training programs, while education policies will integrate digital tech skills into national curricula. — Cointelegraph report

From the report, it is evident that the Socialist Republic of Vietnam, a country located in Southeast Asia with an estimated nearly half a trillion in GDP, is looking to position itself to capitalize on new technologies through incentives.

We talk about incentives a lot when addressing crypto projects and expected trends of developments, but not very often do we look at government-side incentives that are likely to come forth. Of course, at the end of the day, the citizens are paying for it, so the system essentially looks like this:

— Citizens taxes fund government incentives programs to attract businesses in emerging technologies spaces.

— Business developers take the bait, build and deploy services that leverage incentives to drive engagement and adoption within the country.

— The successful few scale to contribute billions in economic value.

The perks of it all is that when it comes to crypto, generally, although businesses may base and operate from specific countries, the consumer reach will more often than not, be global.

This significantly increases the potential returns on every amount invested.

Regulations will be business-specific

The government might believe that they can regulate the use of crypto by individuals, but the truth is that they will only ever be able to regulate very specific businesses.

This will generally be businesses that hold custody of user funds, because at this stage, citizens interest is present and needs to be protected.

In every other aspect of crypto, interest is individually protected because wealth is self custodied and third-party risks are essentially absent.

That said, there's a growing demand for financial privacy and autonomy amongst individuals, globally. This is bound to escalate and cause privacy-tech to gain adoption, effectively making it difficult for the government to have any meaningful oversight of how individuals use and grow their wealth.

The rules will change fast, certainly, not without a fight, but it's inevitable that centralized regulation as we have today will become more and more less effective for individuals, when it comes to finance.

Posted Using INLEO