Vietnam Launches Crypto Sandbox with Tether to Balance Risk and Innovation

Vietnam and Tether Limited Inc., the issuer of stablecoin USDT, have announced a strategic collaboration to develop a secure and licensed digital-asset ecosystem in the country. The partnership, confirmed during a meeting between Tether's Vice President of Global Expansion and Strategic Partnerships Marco Dal Lago and Deputy Prime Minister Ho Duc Phoc, aims to leverage Tether's expertise in building legal frameworks for crypto transactions to support Vietnam's economic growth. The initiative aligns with Resolution 05/2025/NQ-CP, a government decree authorizing a five-year pilot program to regulate cryptocurrency exchanges. Under this framework, Vietnam plans to license a maximum of five exchanges initially, creating a controlled environment to test market stability and regulatory mechanisms before introducing comprehensive legislation.

The pilot program, launched in September 2025, reflects Vietnam's cautious approach to integrating digital assets into its financial system. Deputy Prime Minister Phoc emphasized that crypto-asset trading is a high-risk domain requiring a "professional 'playground' for investors" while serving as a channel to attract foreign and domestic capital for infrastructure projects. Tether has pledged to share its global experience in operational frameworks, emphasizing transparency, security, and cash-flow management. The collaboration includes guidance on designing secure trading systems, policy development, and managing liquidity through regulated exchanges.

Vietnam's Ministry of Finance has yet to receive formal applications for the pilot, though several firms are preparing to meet stringent licensing criteria. These include maintaining a minimum capital of VND 10 trillion (approximately USD 379 million), with 65% institutional ownership, and foreign equity capped at 49%. The ministry aims to finalize regulations on taxation, compliance, and operational standards by 2026. Analysts note that Vietnam's high crypto adoption rate-ranked among the world's top ten-contrasts with its unregulated trading environment, where 17 million users transact over $100 billion annually via offshore platforms. The pilot seeks to shift this activity to onshore, taxable channels integrated into the domestic financial system.

Tether's involvement is seen as critical to balancing innovation with risk mitigation. Dal Lago highlighted Vietnam's potential as a strategic market due to its young population, rapid GDP growth (nearly $500 billion), and high remittance inflows. The partnership also explores collaborations with local enterprises to establish operational exchanges, with Tether providing technical expertise on stablecoin infrastructure. Stablecoins like USDT, backed by $177 billion in reserves, could facilitate secure transactions and liquidity management in the emerging market.

The pilot's success hinges on addressing regulatory uncertainties and high entry barriers. Critics argue the five-license cap favors large financial institutions over fintech innovators, potentially stifling competition. However, officials stress that the controlled approach aims to prevent speculative excesses seen in other markets while gathering data on risk management. The Ministry of Finance is also studying Singapore's and Japan's regulatory models to refine its framework.

Vietnam's broader economic context underscores the urgency of this initiative. With a projected 8% GDP growth in 2025 and a $911 billion trade turnover, the government views regulated crypto markets as a tool to modernize financial infrastructure and attract foreign investment. By integrating stablecoins and licensed exchanges, Vietnam aims to enhance financial inclusion and position itself as a regional hub for digital assets.

Source: [1] The Investor (https://theinvestor.vn/tether-seeks-vietnamese-partnerships-to-develop-crypto-asset-market-d17303.html)

[9] Decrypt (https://decrypt.co/343048/vietnam-pilot-five-licensed-crypto-exchanges)

[11] BSC News (https://bsc.news/post/vietnam-tether-crypto-market)