Digital Assets as Collateral in Banking Credit Activities: Legal Challenges and Recommendations for Improving Vietnamese Law

This paper analyzes the potential use of digital assets as collateral in banking credit activities, considering it an inevitable trend in the era of digital transformation. It examines the legal characteristics of digital assets, evaluates Vietnam’s current legal framework on the establishment, registration, and enforcement of security interests in digital assets used as collateral in credit transactions. Based on the legal challenges of employing digital assets as collateral in banking credit activities in Vietnam, the paper proposes recommendations for improving the law, thereby protecting the legitimate rights and interests of the parties involved and promoting the development of the financial market in the digital economy.