Vietnam journey toward crypto trading legalization

​Just a few years ago, Vietnam was considered one of the harshest countries when it came to cryptocurrencies. In 2017, the government restricted their use as a means of payment and explicitly prohibited banks from handling transactions in Bitcoin or Ethereum. Yet, despite these restrictions, cryptocurrencies quietly penetrated the financial life of the Vietnamese. For the younger generation, it became a new way to earn money; for entrepreneurs, an opportunity to enter the global market; and for small investors, a chance to protect savings from inflation.

And by 2025, Vietnam unexpectedly emerged as one of the global leaders in crypto adoption, ranking fourth in the Chainalysis index. A country that had never officially recognized cryptocurrencies was, in fact, living by them. This paradox forced the government to rethink its policy.

Loading...

The tweet was deleted by the author.

But we saved everything 🙂.

The gray zone and first signs of change

The first real signal came in the early 2020s, when the prime minister instructed the creation of a working group to study digital assets. It was not yet a green light, but it showed that the government would not keep its eyes closed forever. Gradually, policymakers began to realize: it is better to give the market clear rules than to let it develop in the shadows.

The digital industry law and pilot trading project: a turning point in 2025

The real breakthrough came in 2025. In June, the national assembly passed the digital industry law, which for the first time recognized crypto assets as a distinct class. It will come into effect on January 1, 2026, laying the legal foundation for exchanges, investment funds, and startups. For the first time, Vietnamese legislation introduced the concepts of digital assets, licensed trading, and operator accountability.

Less than three months later, the government launched a five-year pilot program for crypto trading. Its conditions showed just how determined the state was to control the process. Organizations wishing to run exchanges must meet extremely strict requirements. The minimum charter capital is 10 trillion dong (≈ $379 million). At least 65% of that must come from organizations, and more than 35% must be held by at least two institutions — banks, brokerage firms, insurance companies, or tech firms. Foreign ownership is capped at 49%.

Control instead of anarchy

The requirements apply not only to money, but also to people. The general director must have at least two years of relevant experience, while the chief technology officer is required to have five. Each company must employ at least 10 staff in technology roles with certified cybersecurity training and another 10 with securities practice certificates. Before launch, the IT system itself must meet level 4 information security standards.

Loading...

The tweet was deleted by the author.

But we saved everything 🙂.

Token issuance is just as tightly regulated. Tokens must be backed by real assets — such as real estate or commodities, but not fiat currency or securities — and offerings can be directed only to foreign investors. At least 15 days before the launch, issuers are required to publish a roadmap and all supporting documents.

Licensed providers are permitted to organize trading markets, offer custody services, issue tokens, and even trade on their own account. Yet all of this must operate within strict risk management procedures: oversight of deposits and assets, transparent payment processes, AML and CFT checks, and monitoring for potential financing of weapons of mass destruction. The resolution also requires internal audits, transaction monitoring, systems for handling conflicts of interest and customer complaints, as well as compensation procedures.

As for the domestic market, citizens will be allowed to open accounts with licensed platforms to legally buy and sell crypto assets. But six months after the first licensed provider begins operations, any trading outside official channels will be treated as a violation — punished with administrative fines or even criminal prosecution, depending on the severity.

Loading...

The tweet was deleted by the author.

But we saved everything 🙂.

These strict rules serve a clear purpose. The authorities want to avoid a “wild west” scenario where exchanges pop up without guarantees and investors are left unprotected. For Vietnam, a country that has already seen its share of scams in the past, this is a matter of political trust.

At the same time, such conditions risk suffocating innovation. Businesses note that the 10 trillion dong capital requirement excludes nearly all local entrepreneurs, leaving the field only for big financial players. And the 49% cap on foreign ownership could discourage international capital inflows. The result is a paradox: Vietnam wants to become a crypto hub, but it is building an entry wall that may be too high.

The social dimension: Cryptocurrency as everyday life

This mass demand pushed the government to change its rhetoric. Instead of banning, the state decided it is better to manage the process than lose to it. In fact, it was ordinary Vietnamese citizens, not officials, who became the real driving force behind legalization.

The new law officially recognizing crypto assets, combined with the five-year crypto trading pilot, marks the beginning of a new era for the country. Will Vietnam become a new Web3 hub in Southeast Asia, or will it get bogged down in its own bureaucracy? One thing is already clear: the “gray zone” is over.Vietnam, which once ignored cryptocurrency, is now betting on it. And if the balance between control and innovation is found, the country has a real chance to become a model for the entire region.