Vietnam is moving forward with a landmark initiative to regulate its digital asset space. The government has announced it will license only five exchanges as part of a new pilot program for the Vietnam crypto market, aiming to bring massive offshore trading activity within a regulated framework.
Strict Licensing for the Vietnam Crypto Market
During a recent briefing, Deputy Finance Minister Nguyen Duc Chi revealed the selective nature of the program. Despite high expectations for interest, he noted that no formal applications have been submitted yet.
Consequently, the government is actively drafting detailed implementation rules. These will cover critical areas like taxation, anti-money laundering (AML) protocols, and accounting standards to ensure a secure and compliant Vietnam crypto market.
Bringing Billions in Volume Onshore
The pilot program addresses a significant opportunity. Currently, an estimated 17 million Vietnamese traders generate over $100 billion in annual crypto volume, mostly on foreign platforms.
Therefore, by creating a licensed, onshore Vietnam crypto market, the government aims to capture this economic activity. A key requirement will be that exchanges offer direct trading pairs with the Vietnamese dong (VND), fostering tighter integration with the national financial system.
Timeline and Next Steps
The goal is to have licensed businesses operational before 2026. However, progress will depend on how quickly potential participants can meet the stringent regulatory requirements. This cautious, phased approach reflects the government’s strategy to nurture a controlled and sustainable Vietnam crypto market.
