5 Minutes
Vietnam opens a regulated pathway for cryptocurrency trading
Vietnam has approved a five-year pilot program to legalize and tightly regulate cryptocurrency trading, creating a controlled gateway into a market that has expanded rapidly without formal rules. The government resolution outlines strict entry requirements for exchanges, mandates that all issuance, trading and payments be settled in the Vietnamese dong, and limits foreign control of crypto platforms.
Key provisions of the pilot
Under the new framework, only Vietnamese companies are permitted to operate trading platforms and issue tokens. Token issuers may sell to foreign investors, but platform operators must be domestically owned. Exchanges seeking to participate in the pilot must meet a high capital threshold: a minimum paid-in capital of 10 trillion dong (roughly US$379 million). Institutional investors are required to provide at least 65% of that capital, and foreign ownership of trading platforms is capped at 49%.
How the migration and licensing process will work
The pilot is designed to bring current crypto holders and foreign investors into an approved, licensed ecosystem. Vietnamese residents who already hold digital assets will be allowed to open accounts on exchanges that obtain government approval. Once the first exchange license is issued, individuals and firms will have six months to move their trading activity to licensed venues. After the transition period, trading on unlicensed platforms by Vietnamese users will be considered illegal; however, the government has not yet publicized the specific penalties for non-compliance.
Investor access and protections
The policy aims to balance access for investors with safeguards against systemic and fraud risks. By insisting that issuance, trading and payments occur in dong and that domestic entities control trading platforms, regulators intend to keep capital flows transparent and subject to Vietnamese law. The requirement that a majority of exchange capital comes from institutional sources is intended to ensure better governance, stronger compliance with AML/KYC standards, and deeper liquidity on licensed venues.
Policy context: law, infrastructure and adoption
Vietnam's pilot builds on recent legal and technical foundations. In June, the National Assembly approved the Law on Digital Technology Industry, which for the first time provides legal definitions and classifications for digital assets and sets out rules for their management. In July, authorities launched NDAChain, a permissioned Layer 1 blockchain designed to anchor national digital infrastructure. NDAChain is operated by the Ministry of Public Security's Data Innovation and Exploitation Center and was developed with the National Data Association to support secure, auditable state-managed services.
Why regulators are cautious but receptive
Officials see the pilot as part of a broader effort to manage a fast-expanding digital economy while harnessing the benefits of blockchain innovation. Vietnam ranks among the most crypto-engaged countries globally: Chainalysis placed Vietnam fifth in its adoption index last year, estimating about 17 million Vietnamese own digital assets with aggregate holdings exceeding US$100 billion. That deep grassroots adoption has pushed policymakers to design a measured framework that preserves market access while limiting potential risks to monetary stability and financial integrity.
Regional implications and investor outlook
Vietnam's five-year trial will be closely watched across Asia and by global crypto investors. The pilot itself allows regulators to monitor market behavior, stress-test safeguards, and determine whether to expand, relax, or tighten rules when the program concludes. By placing caps on foreign ownership, mandating domestic control of platforms, and requiring dong-denominated settlements, Hanoi aims to attract legitimate capital flows while reducing the chance of regulatory arbitrage and unauthorized offshore trading.
What to expect next
Market participants can expect a phased rollout as licensing begins. Exchanges preparing to apply will need to mobilize significant institutional backing and compliance capabilities. Investors should monitor announcements from Vietnam's regulatory bodies about licensing timelines and enforcement measures. The pilot represents a pragmatic step toward formalizing the country’s crypto market, balancing innovation and oversight while acknowledging that digital assets are already entrenched in Vietnam's financial landscape.
Note: Coverage includes public reporting and social media commentary by industry observers. For example, several market watchers cited Bloomberg coverage and social posts noting that external investors may participate under the new rules, but platform operation and token issuance remain anchored to domestic entities.
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