Vietnam Proposes 0.1% Crypto Transaction Tax Under Securities-Style Rules

Vietnam is set to introduce a 0.1% tax on cryptocurrency transactions, a levy similar to the one applied to stock trading in the country. The proposed tax framework, which is now open for public consultation, aims to regulate crypto assets under the same rules as securities. This move marks a significant step in the nation's broader efforts to bring digital assets under formal financial oversight.

The tax will apply to individuals transferring crypto through licensed service providers, regardless of their residency status. This structure is designed to simplify compliance and ensure broad coverage of the market. The levy is applied on a turnover basis rather than on net profits, aligning with existing rules for stock trading in Vietnam.

Corporate investors, however, will face a different tax structure. Firms earning income from crypto transfers will be taxed at a rate of 20% on their profits, after deducting purchase costs and related expenses. This aligns the treatment of crypto profits with standard corporate income tax rules, reinforcing the government's view of digital assets as a business-related financial instrument.

Why Did This Happen?

Vietnam's regulatory approach reflects an effort to align with global trends while maintaining control over the crypto market. The draft defines crypto assets as digital items that rely on cryptographic or similar technologies for issuance, storage, and transfer verification. This formal definition helps clarify the scope of the new tax rules and provides a legal basis for future regulatory actions.

The proposed framework also includes strict requirements for exchange operators. Firms wishing to run a digital asset trading platform in Vietnam must have at least 10 trillion Vietnamese dong, or about $408 million, in charter capital. This threshold exceeds the capital requirements for commercial banks and is significantly higher than in many other industries.

How Did Markets React?

The regulatory proposal has drawn attention for its high entry barriers. As of September 2025, no companies had applied to join the five-year pilot program for a regulated crypto market, citing the demanding capital and eligibility criteria. However, the government recently began accepting license applications for crypto exchanges, signaling a concrete step toward formal oversight.

Foreign investors are also subject to restrictions under the new rules. While permitted to participate in Vietnamese crypto exchanges, foreign ownership is capped at 49%, reinforcing a policy of domestic control over key financial sectors. This approach aims to ensure stability and compliance within the growing market.

What Are Analysts Watching Next?

The regulatory framework is part of Vietnam's broader plan to manage the risks associated with digital assets while fostering innovation. The pilot program, launched in September 2025, is expected to test the viability of a regulated crypto market in the country. Authorities have emphasized the need for transparency and security in digital asset transactions, especially given Vietnam's high adoption rates.

Investors are closely watching whether the proposed tax structure will deter high-frequency trading or encourage institutional participation. The flat tax rate on individual transactions could increase compliance costs for frequent traders, while the profit-based model for corporations may encourage more strategic long-term investment. The success of the pilot program will depend on how effectively the government can balance regulation with market growth. High capital requirements and foreign ownership limits may limit competition in the short term, but they could also lead to a more stable and secure market environment in the long run.