Vietnam’s Cautious Step Into Crypto Regulation
Vietnam’s Ministry of Finance is preparing to license just five crypto exchanges as part of its new pilot program, marking a cautious but significant step toward regulating digital assets. The announcement came Monday from Deputy Finance Minister Nguyen Duc Chi, who said the ministry is finalizing operational standards, compliance protocols, and taxation frameworks before opening the pilot.
According to local reports from VnEconomy and Vietnam Plus, no formal applications have yet been submitted, though several domestic firms are preparing technical systems and holding early-stage talks with ministry officials. Chi added that the timeline for approval depends on business readiness, but he hopes to see at least one exchange licensed before 2026.
A Tight Licensing Window Raises Concerns
While the pilot program marks a long-awaited move toward legalization, the government’s five-license cap has already triggered criticism from industry experts who say it could stifle innovation and drive crypto talent abroad.
Vitaliy Shtyrkin, Chief Product Officer at B2BINPAY, described the plan as overly restrictive, saying:
Shtyrkin warned that unless Vietnam lowers its barriers, liquidity and innovation will migrate offshore, leaving the so-called “pilot” as little more than a symbolic experiment.
Vietnam’s Crypto Adoption Soars Despite Restrictions
Despite limited regulatory clarity, Vietnam remains a global leader in crypto adoption. According to Chainalysis’ 2025 Global Crypto Adoption Index, the country ranks among the top three worldwide, with Asia-Pacific transaction volumes surging from $1.4 trillion to $2.36 trillion year-over-year.
Crypto trading and investment are not yet fully legalized, but Vietnam has emerged as one of the world’s most active retail markets, fueled by young, tech-savvy investors and widespread use of stablecoins for remittances.
The new pilot comes after the government issued a resolution last month authorizing the establishment of a regulated digital asset market, a major policy shift in a country where digital assets have long existed in a legal gray area.
Experts Warn of “Missed Opportunities”
Industry leaders worry that the limited pilot framework could deter startups and international platforms from entering the Vietnamese market. Lionel Iruk, senior advisor at Nav Markets and managing partner at Empire Legal, said that the lack of early applicants reflects hesitation rather than disinterest.
He added that while capping the pilot at five entities makes sense for risk management, it may also limit competition and knowledge transfer that are essential for a thriving crypto ecosystem.
A First Step in Vietnam’s Digital Finance Roadmap
The pilot program operates under the new Digital Technology Industry Law, passed by Vietnam’s National Assembly in June 2025 with 441 out of 445 votes in favor. The legislation takes effect January 2026, positioning Vietnam as one of the first nations to introduce comprehensive crypto laws through standalone legislation.
Under this framework, the Ministry of Finance will collaborate with the Ministry of Public Security, the State Bank of Vietnam, and other agencies to finalize compliance, taxation, and reporting standards.
Officials emphasize that the pilot’s goal is to build a legal foundation rather than open the floodgates to speculative trading. Still, with only five licenses available, competition for entry will be fierce — and many in the industry fear Vietnam may be overcorrecting at the cost of innovation.
