Vietnam is moving to tighten oversight of its emerging crypto sector, unveiling a draft tax framework that combines transaction levies, corporate taxes, and exceptionally high capital requirements for exchange operators. The proposal, released by the Vietnam Ministry of Finance, is now open for public consultation and outlines how digital asset activity will be taxed and regulated during an upcoming pilot phase.
A Flat Tax on Every Crypto Transaction
Under the draft circular, individual crypto traders - both Vietnamese residents and foreigners — would pay a 0.1% personal income tax on the full value of each transaction. The approach mirrors Vietnam’s existing tax treatment of stock trades, signaling the government’s intent to place crypto firmly within traditional financial oversight.
Importantly, these transactions would not be subject to value-added tax (VAT). Instead, the levy applies directly to transfers, regardless of whether the trader makes a profit. This design prioritizes simplicity and enforceability, but critics argue it could discourage active trading, especially for high-frequency users.
For Vietnamese companies, profits from selling digital assets would be taxed at the standard 20% corporate income tax rate, calculated as the sale price minus acquisition costs and related expenses.
Meanwhile, foreign firms trading through licensed Vietnamese service providers would face a lighter 0.1% tax on transaction revenue, rather than profits.
Crypto Defined - and Carefully Contained
The ministry defines crypto assets as digitally created items secured through cryptographic or digital verification methods, covering their issuance, storage, and transfer. While broad, the definition gives regulators room to adapt as new token types emerge.
Starting September 2025, Vietnam plans to launch a five-year pilot program for the crypto market. During this period, all transactions must be settled in Vietnamese dong, and only approved platforms will be allowed to operate. Officials stress that the trial will proceed cautiously, with an emphasis on transparency, security, and investor protection.
Only Vietnamese-incorporated companies will be permitted to issue crypto assets during the pilot. These firms must operate as limited liability or joint-stock companies, and any issued assets must be backed by real, identifiable value, excluding instruments that resemble traditional currency or securities.
Sky-High Capital Requirements for Exchanges
Perhaps the most striking element of the proposal is its strict capital threshold for digital asset exchanges. Companies seeking to operate a crypto platform would need a minimum charter capital of VND 10 trillion, roughly $408 million.
To put that into perspective, the requirement is three times higher than Vietnam’s minimum capital for banks and more than 30 times higher than what airlines need to launch operations. Foreign ownership would be capped at 49%, reinforcing state control over the sector.
Institutional investors must contribute at least 65% of an exchange’s capital, with 35% coming from two or more financial institutions such as banks, securities firms, or insurers. The structure strongly favors large, well-capitalized players, effectively shutting out startups and smaller crypto-native firms.
Reporting, Compliance, and What Comes Next
Licensed service providers would be required to submit monthly transaction and tax reports to authorities, aligning crypto reporting timelines with existing securities laws. Crypto service income would generally be taxed at 20%, though limited exemptions apply under Vietnam’s updated corporate tax legislation.
Public feedback on the proposal is currently being collected via the Ministry of Finance’s website. Officials say the consultation period will help refine the framework before it is finalized, but the overall direction is clear: Vietnam wants crypto activity, but only under tight supervision and with high barriers to entry.
As the country positions itself for a controlled crypto experiment, the new rules send a strong signal to the market. Participation is welcome - but only for those with deep pockets, strong institutional backing, and a willingness to operate within one of the region’s most restrictive crypto regimes.
