Vietnam Stakes Control in $100B Crypto Market with $379M Rules

Vietnam has launched a government-backed five-year pilot program for regulated cryptocurrency trading, marking a significant shift in its approach to digital assets. The initiative, which aims to evaluate the viability and regulatory framework for crypto trading, allows for the formalization of an existing market that has grown substantially in recent years. According to Chainalysis data, Vietnam ranks fifth globally in crypto adoption, with over $100 billion in digital assets held by residents. The government now seeks to bring this activity under official oversight while maintaining a cautious stance on broader legal recognition of virtual currencies like Bitcoin.

Under the new framework, all crypto exchanges operating within the pilot program must be fully Vietnamese-owned, with no foreign control permitted. Any company seeking to launch a crypto trading platform must raise a minimum capital of 10 trillion Vietnamese dong, approximately $379 million. Of this amount, at least 65% must be sourced from institutional investors. Furthermore, foreign investors are limited to a maximum 49% ownership stake in any licensed crypto business, ensuring domestic control over the sector.

The pilot program also mandates that all crypto issuance, trading, and payments occur in Vietnamese dong. Only Vietnamese companies are permitted to issue crypto assets, though they may only offer these to foreign investors. Local residents are allowed to trade digital assets but are barred from issuing them, a move designed to prevent the proliferation of unregulated tokens. The government has also set a six-month deadline for the first license to be issued. After that period, any Vietnamese user engaging in crypto trading on unlicensed platforms will face legal consequences, though specific penalties have yet to be announced.

The new regulatory landscape aligns with broader economic reforms aimed at leveraging blockchain and digital infrastructure to drive growth. In June, Vietnam’s parliament passed a new law recognizing digital assets, which will take effect in January 2026. This development represents a sharp departure from past policies, which had discouraged public engagement with crypto through warnings from central bank officials. Now, officials view digital assets as one of 11 priority tech areas that could contribute to achieving double-digit economic growth.

In a notable move, Dunamu, the operator of South Korea’s Upbit exchange, has entered into a partnership with Vietnam’s Military Bank to build a crypto trading platform in the country. The collaboration is already underway and represents a key step in implementing the government’s vision for a regulated digital asset market. However, Bitcoin and other virtual currencies are still not recognized as legal tender in Vietnam. The government is exploring sandbox mechanisms—special zones with relaxed regulations—as part of its broader plan to develop international financial hubs in cities like Danang and Ho Chi Minh City. These sandboxes may provide a controlled environment for further experimentation with crypto-related innovations.