Vietnam Crypto Exchange Pilot Program

Vietnam is set to launch a pilot program for domestic crypto exchanges in March under Resolution 5/2025, requiring a minimum capital of 10,000 billion VND and banning trading on foreign platforms [1]. The move aims to regulate a market that ranks fourth globally in crypto adoption, with estimated transactions exceeding $200 billion in the 12 months leading to June 2025 [1].

Regulatory Framework and Licensing

The Ministry of Finance has begun accepting applications, with five companies—including subsidiaries of Techcombank, VPBank, LPBank, VIX Securities, and Sun Group—passing initial evaluations [1]. To qualify, exchanges must be Vietnamese legal entities with at least 65% institutional ownership, mandating that over 35% of capital comes from banks, securities firms, or insurers [1]. The government plans to limit the number of licenses to manage risk while ensuring competition, though the exact number remains unclear [1].

To enforce compliance, the Ministry is drafting penalties that could fine unlicensed service providers up to 2 billion VND and suspend operations for up to five months [3]. Organizations organizing unlicensed markets face fines of 1.5 to 2 billion VND, while additional penalties for other securities-related crypto violations could reach 3 billion VND for organizations and 1.5 billion VND for individuals [3].

Market Context and Security Risks

While the government seeks to retain trading fees and potentially generate over $800 million annually with a 0.1% transaction tax, it is simultaneously drafting rules to prohibit citizens from using foreign platforms like Binance [1]. This shift comes as authorities seek to control capital outflows and address risks associated with stablecoins and unregulated trading [1].

Security threats persist despite the regulatory push. Although crypto fraud incidents in Vietnam decreased by 15% in 2022 to 64,080 cases, security firm Kaspersky reported a 40% global increase in crypto fraud that year [2]. Scammers are evolving tactics, such as using fake PDFs to solicit withdrawal fees for non-existent cloud mining accounts, exploiting the perception of crypto as a rapid wealth generator [2].

What to watch

• The issuance of the first operating licenses for the five companies that passed initial review [1].
• The finalization of the decree banning transactions on foreign crypto platforms [1].
• The implementation of the proposed 0.1% transaction tax [1].

The pilot program represents Vietnam's first comprehensive legal framework for digital assets, attempting to balance the economic potential of a high-volume market with the need for capital control and investor protection.