Vietnam Caps Crypto Licenses to Five, Sparking Innovation vs. Control Debate

Vietnam is set to issue its first crypto exchange licenses by 2026, with a regulatory framework capping participation at five licensed operators. The pilot program, governed by the Digital Technology Industry Law passed in June 2025, aims to formalize digital asset regulation in the country. Deputy Finance Minister Nguyen Duc Chi confirmed the government's intent to limit the initial phase to five exchanges, emphasizing strict oversight to ensure compliance with operational, tax, and security standards. The law will take effect in January 2026, positioning Vietnam among early adopters of comprehensive crypto regulations [1].

The regulatory framework is being developed through collaboration between the Ministry of Finance, the Ministry of Public Security, and the State Bank of Vietnam. Key components include taxation policies for crypto transactions, accounting standards for digital assets, and licensing procedures requiring inter-agency coordination. As of October 2025, no formal applications had been submitted to the Ministry of Finance, though businesses are preparing systems and engaging in preliminary discussions with officials. The government anticipates receiving proposals once licensing criteria are clarified, with approvals expected as early as 2026 [2].

The limited licensing model reflects a cautious approach to balancing innovation and risk management. Experts suggest the narrow cap could drive market consolidation, favoring operators with robust compliance and operational capabilities. This structure is expected to enhance trust in Vietnam's crypto ecosystem, attract foreign and domestic investment, and establish a foundation for future regulatory expansion. The pilot program's success could determine the trajectory of digital asset adoption in the country, with potential implications for institutional investor participation [1].

Analysts highlight the regulatory framework's alignment with global trends toward controlled crypto markets. By enforcing strict licensing and operational standards, Vietnamese authorities aim to mitigate risks associated with digital asset misuse while fostering a transparent environment. The program's focus on taxation and compliance is also seen as a step toward integrating crypto assets into the formal economy, potentially boosting efficiency and stability in the sector [3].

Despite regulatory clarity, challenges remain. The high capital requirements and complex approval processes have drawn criticism from industry experts, who argue they may favor large financial institutions over fintech innovators. Vitaliy Shtyrkin of B2BINPAY noted that the five-license cap could limit competition and slow knowledge transfer, urging policymakers to lower barriers to entry. Meanwhile, the absence of early applicants underscores the sector's hesitance amid evolving regulatory expectations [4].

The pilot program's success will hinge on its ability to adapt to market dynamics while maintaining oversight. If executed effectively, it could position Vietnam as a regional hub for crypto innovation, leveraging its existing status as a top-three global market for crypto adoption. The government's emphasis on stakeholder feedback and inter-agency cooperation suggests a commitment to refining the framework, ensuring it meets both investor needs and regulatory objectives [1].