Vietnam Proposes Crypto-Backed SME Loans Amid Circle Freeze

Vietnam's move towards a more crypto-friendly regulatory environment has gained momentum with the Ministry of Finance proposing a draft law that would allow small and medium-sized enterprises (SMEs) to use digital assets as collateral for loans.

The proposal forms part of a revised Law on Support for SMEs, which is currently open for public consultation. This move aims to address the shortage of eligible collateral that has been constraining technology-driven firms holding patents, software, and tokenized assets from accessing credit.