Vietnam has officially approved a five-year pilot program allowing regulated cryptocurrency trading platforms to operate under strict government oversight. According to BTCPeers, the framework restricts operations to domestically registered companies and requires all issuance, trading, and settlement of digital assets to be conducted in Vietnamese dong.

The pilot program sets stringent entry requirements for potential exchange operators. Any company seeking to launch a trading platform must maintain at least 10 trillion Vietnamese dong ($379 million) in capital, with a minimum of 65% coming from institutional investors. Foreign ownership in licensed trading platforms remains capped at 49%.

Coinpedia reports that the program will license multiple domestic exchanges while requiring Vietnamese oversight and tightened standards on issuance, trading, and anti-money laundering compliance. The initiative allows authorities to study market impacts before determining full legalization.

Why This Development Matters

This regulatory shift addresses Vietnam's position as one of the world's most active digital asset markets. The country currently ranks fifth globally in cryptocurrency adoption according to Chainalysis data, with approximately 17 million Vietnamese citizens owning crypto assets as of 2024. SGGP confirms this represents a decrease from 21 million owners in 2023, when Vietnam ranked third globally.

The pilot program directly responds to rising unregulated crypto transactions and retail participation risks. Finance Minister Ho Duc Phoc announced the move aims to curb dangers posed by unsupervised trading activities that have surged alongside growing public adoption. Coindoo notes the project aligns with Vietnam's broader goal to integrate cryptocurrency into the digital economy while encouraging blockchain innovation.

The framework provides Vietnamese crypto businesses with domestic operation opportunities. Previously, many Vietnamese cryptocurrency companies registered in Singapore or the United States due to regulatory uncertainty, causing competitive disadvantages and lost tax revenues for Vietnam.

Regional Market and Industry Effects

Vietnam's regulatory approach positions the country strategically within Southeast Asia's evolving cryptocurrency landscape. The pilot program coincides with broader regional trends toward crypto regulation, as BeInCrypto reports that several Asian countries including Malaysia, Thailand, Japan, and South Korea have been reviewing crypto-related policies throughout 2025.

The initiative addresses Vietnam's inclusion on the Financial Action Task Force's gray list since 2023 due to insufficient anti-money laundering regulations for cryptocurrency assets. Cointelegraph explains that Vietnam's Law on Digital Technology Industry, passed in June 2025, represents part of efforts to meet FATF standards and rebuild international financial reputation.

Technical collaboration with international exchange Bybit will assist Vietnam's platform development. Regulation Asia confirms the partnership involves testing regulated trading through a controlled sandbox environment, allowing regulators to monitor trading mechanisms under supervised conditions.

The program could establish Vietnam as a regional cryptocurrency hub if trials prove successful. With Asia accounting for nearly half of global crypto trades, Vietnam's measured approach balances innovation promotion with consumer protection, potentially attracting both domestic and international investment in the digital asset sector.

Further Reading

For deeper insights into global adoption trends, our Alternative Financial Systems Index tracks regulatory frameworks and adoption metrics across 50 countries. The comprehensive database provides current analysis of how governments worldwide are adapting to digital asset growth and regulatory challenges.