Vietnam's Ministry of Public Security Proposes Expanding Electronic Identity Recognition to Digital Assets and Other Objects
The Ministry of Public Security of Vietnam has proposed in the draft "Law on Electronic Identity Recognition and Authentication" to expand the scope of electronic identity recognition to include data, applications, digital assets, and various other assets.
The draft stipulates that electronic identity recognition objects not only include institutions, organizations, and individuals but also extend to physical entities such as products, goods, and devices, as well as digital resources and digital assets like databases, documents, images, and videos; the identification of digital assets will be executed according to the provisions of the Digital Technology Industry Law, and mechanisms for suspending, restoring, and canceling electronic identities and identification codes are established.
Regulation extends identity recognition from citizens and organizations to physical and digital entities, concentrating financial and compliance resources into a unified national identification system, benefiting technology and data service providers capable of system integration, while decentralizing the management of digital assets.
Source: Public Information
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The current electronic identity in Vietnam primarily serves citizens and government digitization. The Ministry of Public Security's push for legislative upgrades aims to establish a unified recognition mechanism covering both physical and digital environments; including digital assets, data, and applications under electronic identity essentially incorporates on-chain and off-chain assets into a nationally manageable framework.
On the capital path, once digital assets are required to be linked to electronic identities, transactions, custody, and circulation will increase compliance steps, raising compliance costs; at the same time, it will spur demand for identity infrastructure, data linking, and auditing tools, with resources shifting towards suppliers capable of providing national system integration and cross-environment identity services.
Similar paths can be seen in the practices of many countries where digital identity expands to enterprises and IoT devices: first covering people, then extending to objects and data, ultimately forming a traceable digital economy foundation. Currently, Vietnam is still in the "legislative consultation" stage.
This essentially represents a regulatory change: as the scale of the digital economy expands, the state uses a unified electronic identity to directly incorporate various entities into a recognizable and manageable scope, shifting pricing power and control to the central identification system.
ABAB News · Cognitive Law
Once identity is extended to assets, management boundaries will be redrawn
Unified recognition is a prerequisite for scaling the digital economy
The next step in regulation is often to turn the "invisible" into the "traceable"