Vietnam on Tuesday approved a five-year pilot programme for crypto trading. Deputy Prime Minister Ho Duc Phoc, on September 9, signed the resolution allowing only licensed Vietnamese firms to operate exchanges and issue assets, with all the transactions to be operated with Vietnamese dong. The government said that the decision was made keeping in mind the already thriving digital asset market, and the legal framework is designed accordingly. Strict regulatory oversight will be met to protect investors and prevent cybercrime.
Strict Rules, Cultural Initiatives Mark Vietnam’s Push Into Regulated Crypto
Under the new framework, only Vietnamese enterprises can issue digital assets, which must be backed by underlying assets, excluding securities and fiat currencies. Meanwhile, foreign investors can issue digital assets only through licensed platforms. Service providers will need a minimum registered capital of VND 10 trillion (roughly Rs. 31,346 crore) with at least 65 percent contributed by institutional investors.
There’s a 49 percent cap on foreign ownership in any exchange. Licensed providers must also meet strict criteria on governance, staffing, cybersecurity, and risk management.
Vietnam’s crypto adoption reflects a broader global trend as governments weigh digital asset regulation. The US has already introduced plans for a crypto reserve, Brazil’s lower house is debating a national Bitcoin reserve, and Indonesia is also considering similar norms. El Salvador is all set to host the first-ever government-backed Bitcoin conference, after it recognised Bitcoin as legal tender in 2021.
The government’s stance on recognising Bitcoin and other virtual currencies as legal tender has not changed. Discussions are underway to test “sandbox” models, which could act as a small piece of the puzzle that is required to build international centres in Da Nang and Ho Chi Minh City.
Alongside this announcement, Vietnam is in the midst of cultural and educational efforts around blockchain. On September 9, the Vietnam Blockchain Association (VBA) and 1Matrix launched the country’s first Blockchain Gallery in Hanoi and unveiled a Satoshi Nakamoto statue. The statue is designed by Italian artist Valentina Picozzi, who symbolises decentralisation and the mystery surrounding Bitcoin’s creator. The blockchain gallery is a combination of art and technology, with the venue expected to host public exhibitions to foster awareness of blockchain and digital assets.
A cautious but progressive entry into regulated crypto trading presents both opportunities and challenges for Vietnam. This new framework could bring oversight to a rapidly growing sector. This pilot project may serve as a blueprint for other emerging economies seeking to balance innovation with financial stability, depending on how the project functions for Vietnam in the next five years.
