Vietnam’s Finance Ministry has proposed revisions to the SME Law to let small and medium-sized enterprises use digital assets, virtual assets, and intellectual property as collateral for bank loans, aimed at expanding credit access for startups and tech firms.

Regulators are balancing innovation with consumer protection and financial stability as domestic exchanges, cross-border activity, and broader crypto regulation continue to evolve.

Banks will need robust valuation and risk management for digital assets, with critical implementation details to be resolved before mid-2027.

Parliamentary approval, bank adaptations to intangible-asset valuations, and the timeline for launching regulated crypto-trading platforms will be key milestones.

The draft prioritizes lending decisions based on broader factors such as credit ratings, business plans, market growth potential, and cash flows, alongside traditional risk assessments.

SMEs face credit constraints, with the sector representing the vast majority of businesses yet receiving only a minority of total credit, partly due to lack of conventional collateral and limited financial transparency.

Key dates point to a National Assembly submission in October 2026 and an implementation target of July 1, 2027, giving regulators about a year to finalize guidelines and risk controls.

The move reflects regulators’ view of digital assets as legitimate resources, contrasting with some Western approaches where crypto regulation is slower to adopt.

The proposal is open for public consultation, with many details still missing and banks awaiting clear regulatory guidance on crypto classification and risk management.

There is a global trend toward integrating digital assets, with developments in custody, tokenization, and blockchain-based financial services.

Observers should watch the consultation outcomes, collateral standard wording, and the licensing process for crypto platforms, as these will shape the reform’s practical impact.

Valuation and risk management are the core challenges, with crypto collateral requiring strict haircuts, custody standards, liquidation rules, and clear price-drop protocols, while IP also demands reliable valuation and ownership records.