Vietnam Plans State-Backed Crypto Exchange, Aims to Regulate Digital Assets

Vietnam is taking significant steps towards establishing a state-backed cryptocurrency exchange, marking a pivotal moment in the country's digital asset landscape. The Ministry of Finance announced on April 17 its plan to pilot a national crypto exchange, a move that is part of a broader initiative to create legal frameworks for digital assets. This development comes after a meeting in Hanoi between Finance Minister Nguyen Van Thang and Ben Zhou, representing Bybit Technology Co. Ltd.

Minister Thang welcomed Zhou and the Bybit team, expressing gratitude for their support in Vietnam's cryptocurrency expansion. He highlighted the global growth of blockchain technology and digital assets, emphasizing Vietnam's intention to keep pace with these advancements. Bybit, established in 2018, is recognized as a major player in the global crypto market, with a strong presence in Southeast Asia. Zhou noted that Bybit's users were unaffected by a significant hack in February, demonstrating the company's resilience and transparency during crises.

Zhou also expressed Bybit's commitment to supporting Vietnam's crypto industry development. He praised Vietnam's robust blockchain talent pool and offered Bybit's anti-money laundering detection capabilities to assist in establishing a secure business platform. Minister Thang revealed that Vietnam ranks third globally in terms of crypto investor population, but many transactions occur without official documentation, posing significant financial risks to users. The government aims to protect investors and mitigate risks through new regulations.

The Ministry of Finance is collaborating with various agencies to evaluate laws regarding digital assets. Before launching the pilot project, the ministry will seek authorization from government officials to test the legal environment, assess potential risks, and prepare for future growth. This planned system aims to create safe operating environments for investors and businesses while maintaining transparent managerial practices.

Earlier in March, Prime Minister Pham Minh Chinh directed the Ministry of Finance and the State Bank to develop crypto regulations, which are expected to be completed by the end of this month. This regulatory push aligns with the growing global interest in using cryptocurrency for economic development. Private companies are also contributing to these efforts. SSI Securities Corporation, Vietnam's longest-operating securities firm, has partnered with Tether and KuCoin to support blockchain-based startups through its $200 million fund, SSI Digital Ventures.

The combined efforts of Bybit, the Ministry of Finance, and SSI underscore Vietnam's strong support for the cryptocurrency industry. The rapid development of digital asset regulations and government backing make Vietnam an attractive destination for global crypto investors. With public support from the government and funding from private entities, Vietnam is poised to lead the way into the digital finance era.