Vietnam's Crypto Caps: Stability Measures Risk Stifling Innovation

Vietnam's Ministry of Finance has announced that its pilot program for regulated cryptocurrency exchanges will be limited to a maximum of five licensed entities, marking a cautious approach to integrating digital assets into the national economy. This decision follows the issuance of Resolution No. 05/2025/NQ-CP on September 9, 2025, which outlined the framework for the five-year pilot. Deputy Finance Minister Nguyen Duc Chi confirmed the cap during a press briefing on October 6, emphasizing that the strict limit aims to ensure stability and compliance as the government develops comprehensive regulations for taxation, accounting, and operational standards Vietnam Limits Crypto Exchange Pilot to Only Five Licenses^[1]. The pilot will require inter-agency coordination with the State Bank of Vietnam and the Ministry of Public Security to finalize licensing procedures Vietnam to license only five crypto exchanges in new pilot program^[3].

The regulatory framework under the pilot includes the development of tax policies for crypto transactions, specific accounting standards for crypto activities, and stringent capital requirements. Enterprises seeking a license must have a minimum charter capital of 10 trillion VND (~$379 million), with at least 65% of shares held by institutional investors such as banks, securities firms, or technology companies. Foreign ownership is capped at 49% Vietnam to license only five crypto exchanges in new pilot program^[3]. Despite these measures, the Ministry of Finance has yet to receive formal applications from businesses, though preliminary discussions with potential applicants are underway Vietnam Caps Crypto Pilot at Five Licensed Exchanges^[2]. Industry experts have criticized the high barriers, arguing that they favor large financial institutions over fintech innovators and risk stifling competition Vietnam Caps Crypto Pilot at Five Licensed Exchanges^[2].

Vietnam's regulatory approach is part of broader efforts to align with international standards, particularly the Financial Action Task Force (FATF). The country's Digital Technology Industry Law, passed in June 2025, legally recognizes crypto assets and mandates licensing for service providers, positioning Vietnam as a potential regional leader in blockchain innovation . The pilot also aims to address concerns about illicit financial activities by enforcing anti-money laundering (AML) protocols and transaction monitoring . However, challenges remain, including the need to formalize cross-border compliance mechanisms and address regulatory uncertainty, which has delayed participation from private firms Vietnam Caps Crypto Pilot at Five Licensed Exchanges^[2].

The pilot's success is tied to Vietnam's goal of integrating digital assets into its financial system while mitigating risks. By 2026, the government hopes to license at least one exchange, though Deputy Minister Chi noted that timelines depend on business readiness Vietnam Caps Crypto Pilot at Five Licensed Exchanges^[2]. If implemented, the program could generate tax revenue, protect investors, and reduce reliance on offshore platforms, where Vietnam's 17 million crypto users currently trade over $100 billion annually Vietnam to license only five crypto exchanges in new pilot program^[3]. The Ministry of Finance is also developing NDAChain, a government-backed blockchain system, to tokenize assets like bonds and carbon credits, balancing innovation with oversight Vietnam to license only five crypto exchanges in new pilot program^[3].

Vietnam's approach reflects a global trend of cautious crypto regulation, particularly in Southeast Asia. While countries like Singapore and the Philippines adopt more open frameworks, Vietnam's restrictive stance may limit institutional growth despite strong retail adoption. The country ranks fourth in the 2025 Chainalysis Global Crypto Adoption Index, with APAC accounting for nine of the top 20 markets . Analysts suggest that lowering barriers and fostering competition could enhance liquidity and innovation, but the government's focus on risk management appears to prioritize stability over rapid expansion Vietnam Caps Crypto Pilot at Five Licensed Exchanges^[2].