Vietnam Vaults into Crypto with Capital-Heavy, Closed-Loop Pilot

Vietnam has launched a five-year pilot program for regulated cryptocurrency trading, marking a significant step toward formalizing a market that has largely operated without legal oversight. The initiative, outlined in recent regulatory announcements, aims to establish a structured framework for trading, issuance, and payments involving digital assets. The government's approach emphasizes domestic control while allowing limited international participation, with all transactions required to be conducted in the Vietnamese dong.

A key element of the pilot is the imposition of strict capital requirements for platform operators. To qualify for a license, any entity must hold a minimum of 10 trillion Vietnamese dong in capital, with 65% of this amount coming from institutional investors such as banks, securities firms, or fund managers. These entities must collectively hold at least 35% ownership in the platform, ensuring that major stakeholders are well-established and financially robust. The capital rule is intended to mitigate risks associated with underfunded or speculative ventures and to reinforce the stability of the emerging market.

Foreign participation in the program is also capped to preserve domestic oversight. According to the regulations, foreign investors may hold no more than 49% of any licensed platform, with further restrictions limiting individual and institutional investors to participation in only one exchange provider. These constraints reflect a strategic effort to maintain a strong domestic presence in the market while still allowing some level of international involvement.

The pilot program further mandates that all crypto assets issued in Vietnam must be backed by tangible assets such as real estate, excluding securities and fiat-backed tokens like stablecoins. These assets can only be issued to foreign investors and must be transacted in the local currency, reinforcing the government’s control over capital flows and preventing potential currency substitution risks. Additionally, only Vietnamese companies are permitted to issue such assets, ensuring accountability and alignment with domestic economic priorities.

Access to the platforms is also tightly regulated. Eligible participants include Vietnamese nationals who already hold crypto assets, as well as foreign investors. This creates a closed environment where participation is limited to existing holders and external investors, effectively excluding broader retail engagement. By restricting access, regulators aim to manage market demand without encouraging speculative behavior, while also ensuring that the pilot remains within a controlled and observable scope.

The initiative underscores Vietnam’s growing recognition of its role in the global crypto landscape. Despite the absence of a formal legal framework until now, Vietnam has maintained one of the most active crypto markets in the region. The pilot aims to shift this activity into regulated channels, fostering the development of a sustainable domestic industry while maintaining economic security and oversight. Over the five-year period, the program will provide regulators with valuable insights into market dynamics, potentially shaping future policies for the broader crypto sector.