Strict Rules vs. Innovation: Vietnam's Crypto Pilot Waits

Vietnam's Ministry of Finance has confirmed that no enterprises have submitted proposals to pilot digital asset trading under the country's newly launched regulatory framework. Deputy Minister Nguyen Duc Chi revealed the update during a press briefing on October 5, 2025, stating that while several companies are preparing to apply, the ministry has yet to receive formal submissionstitle5^[5]. The pilot program, established under Government Resolution No. 05/2025/NQ-CP, aims to regulate a market where an estimated 17 million Vietnamese trade cryptocurrencies annually, with over $100 billion in offshore transactionstitle5^[5].

The resolution imposes stringent requirements for participation, including a minimum charter capital of VND 10,000 billion ($379 million), with at least 65% contributed by institutional investors such as banks, securities firms, or technology companies. Foreign ownership in licensed entities is capped at 49%, and all transactions must be conducted in Vietnamese dongtitle5^[5]. These conditions, while designed to ensure financial stability and investor protection, have created barriers for smaller firms and startups. Experts note that the high capital thresholds favor large institutions, potentially limiting innovation but aligning with the government's cautious approachtitle6^[6].

The Ministry of Finance is coordinating with the Ministry of Public Security and the State Bank of Vietnam to finalize licensing procedures. Deputy Minister Chi emphasized that the first pilot participants could be licensed before 2026, contingent on enterprises meeting regulatory standardstitle5^[5]. However, the absence of proposals highlights challenges in aligning the pilot with market expectations. VinaCapital analysts observe that the government seeks to transition the informal crypto market into a formal, taxable system, but the process may take time due to the complexity of compliance requirementstitle5^[5].

The pilot's regulatory framework also mandates strict anti-money laundering (AML) and know-your-customer (KYC) protocols. Licensed service providers must maintain level-4 cybersecurity systems, retain transaction data for 10 years, and report suspicious activities to authoritiestitle9^[9]. These measures aim to mitigate risks associated with digital assets while fostering trust in the market. However, industry experts caution that the rules may deter smaller players and require significant operational overhauls for existing firmstitle6^[6].

Legal recognition of digital assets under the Law on Digital Technology Industry, effective January 2026, provides a foundation for the pilot. The law classifies crypto assets as legal property, distinguishing them from securities or fiat-backed tokenstitle7^[7]. This framework aligns with global trends but introduces complexities in enforcement, particularly for state agencies lacking expertise in blockchain technology. As one legal advisor noted, the success of the pilot will depend on the government's ability to balance innovation with oversighttitle6^[6].

Despite the initial lack of proposals, the market remains optimistic. The government's controlled rollout, including a six-month grace period for domestic investors to migrate to licensed platforms, signals a phased approach to integration. Bybit and other international exchanges have already engaged with Vietnamese regulators to explore collaboration opportunities, indicating potential for cross-border partnerships. If the pilot gains traction, it could position Vietnam as a regional hub for regulated digital asset markets, leveraging its existing digital economy and youthful, tech-savvy populationtitle7^[7].