Vietnam's Crypto Gamble: Building a Digital Future on Blockchain

Vietnam has initiated a five-year pilot program for crypto trading, marking a pivotal shift in the country’s regulatory approach to digital assets. The pilot, aligned with the nation’s National Blockchain Strategy (2025–2030), aims to establish a transparent and secure digital asset trading environment. The program is expected to support the development of blockchain infrastructure, enhance digital payment solutions, and foster innovation in the cryptocurrency sector. By creating a controlled environment for testing digital asset exchanges, Vietnam is positioning itself as a regional leader in blockchain and digital finance.

The legal groundwork for this initiative was laid with the passage of the Law on Digital Technology Industry in June 2025, which took effect on January 1, 2026. This landmark legislation officially recognizes cryptocurrencies and virtual assets as property under Vietnam’s legal framework, while also imposing clear regulations for anti-money laundering (AML), know-your-customer (KYC), and licensing requirements for blockchain companies. The law also introduces regulatory sandboxes, allowing firms to test new blockchain-based products in a controlled setting. These measures are expected to attract global exchanges and blockchain startups to Vietnam’s growing digital economy.

KuCoin, one of the world's largest cryptocurrency exchanges, has already taken a step forward by signing a Memorandum of Understanding (MoU) with the Vietnam Blockchain and Digital Assets Association (VBA) and 1Matrix Joint Stock Company. The collaboration aims to accelerate blockchain development and provide Vietnamese startups with the tools to connect with global markets. Under the terms of the MoU, KuCoin will contribute its advanced blockchain technology and global best practices to the local ecosystem. The VBA will focus on policy advocacy and community outreach, while 1Matrix will develop domestic infrastructure to support a sustainable blockchain environment.

Vietnam’s young, tech-savvy population is seen as a major asset in the country’s push for blockchain innovation. With high levels of crypto adoption and a growing number of startups in the digital asset space, Vietnam has the potential to become a key player in the global blockchain ecosystem. The government’s strategic vision is to bridge blockchain with the real economy, using digital assets as a means to facilitate transactions in everyday commerce. Kenny Li, co-founder and COO of Manta Network, highlighted the importance of integrating blockchain with real-world applications, suggesting that the next few years could see the rise of blockchain-powered business models, including initial coin offerings (ICOs) for small businesses.

The regulatory clarity provided by the Law on Digital Technology Industry has already begun to attract foreign investment and foster collaboration with international firms. KuCoin’s recent success in launching a fully regulated exchange in Thailand under the Thai SEC exemplifies the company’s strategy to expand into key markets. As Vietnam continues to refine its legal framework and regulatory approach, the country is expected to become a more attractive destination for global investors and blockchain companies seeking a stable and supportive environment for innovation.

The pilot program is also expected to support the launch of Vietnam’s first official digital asset exchanges in cities like Ho Chi Minh City and Danang by year’s end. These exchanges will serve as critical infrastructure for the development of a transparent and competitive digital asset market. With the support of both domestic and international partners, Vietnam’s blockchain industry is poised for sustained growth and increased global relevance.

Source: [1] KuCoin Strengthens Vietnam Presence with New Blockchain (https://coincentral.com/kucoin-strengthens-vietnam-presence-with-new-blockchain-collaboration/) [2] Crypto ambitions: from early adopters to digital leaders (https://vir.com.vn/crypto-ambitions-from-early-adopters-to-digital-leaders-136017.html) [3] Is Vietnam Finally Affirming Crypto-Rights? | NUR Legal (https://www.nur-legal.com/news/%F0%9F%87%BB%F0%9F%87%B3-is-vietnam-finally-affirming-crypto-rights%3F)