HANOI: Vietnam’s government has given the go-ahead for the five-year pilot of crypto asset trading, a move aimed at capitalising on a market that has thrived in the country despite the absence of a legal framework.
Under the resolution, only Vietnamese companies are permitted to provide the platforms and all issuances, trading and payment of crypto assets must be made in the Vietnam dong, according to a statement on the government website. Only Vietnamese firms can issue the crypto assets, and just to foreign investors.
Any would-be exchange provider needs a minimum capital of 10 trillion dong (US$379 million), of which at least 65 per cent must be contributed by institutional investors. Foreign ownership of any crypto asset trading provider is capped at 49 per cent.
The decision marks a major shift in a nation that has been swift to embrace crypto assets, despite it previously being a regulatory gray area. The country ranked fifth last year in a global adoption index compiled by blockchain firm Chainalysis. An estimated 17 million people in Vietnam own digital assets with a total market value exceeding US$100 billion, according to Vietnam Investment Review.
Vietnamese who are already holding crypto assets and foreign investors will be allowed to open accounts. There will be a six-month window after the first licence is issued after which any trading activities by Vietnamese investors on unlicensed platforms will be deemed illegal, the statement says. It’s not yet clear what the penalties will be.
In June, Vietnam’s parliament approved a law to recognise digital assets from January 2026. This was a departure after years of warnings from the central bank and other government agencies about the risks of investing in virtual currencies and assets.
The government has also identified blockchain, including its infrastructure, digital assets and cryptocurrency, in a list of eleven key technology areas that the country is focussing on as top officials push for double-digit growth in the coming years.
Under a memorandum of understanding with Vietnam’s Military Bank, which was inked last month, Dunamu, the operator of South Korea’s largest digital asset exchange Upbit, will support the lender in establishing a cryptocurrency exchange in Vietnam and transfer Upbit’s technology to the bank, according to the lender’s website.
The government hasn’t confirmed any plans to change the status of Bitcoin and other virtual currencies, which are currently not legal tender in Vietnam. There are, however, proposals to establish several special mechanisms, so-called sandboxes, linked to broader plans to establish an international financial centre in Danang and Ho Chi Minh City. - Bloomberg
