Vietnam takes a cautious step towards regulating the digital asset market with a five-year pilot

Vietnam has launched a five-year pilot program to regulate its burgeoning digital asset market, a strategic move to manage a market that has been thriving without a clear legal framework. This pilot, which took effect on September 9, 2025, represents a significant shift from the government’s previous warnings against crypto. The new framework aims to channel the country’s high crypto adoption rate into a regulated environment, protect investors, and prevent illegal activities such as money laundering and tax evasion.

The pilot program is designed as a “sandbox” mechanism, allowing for controlled experimentation while safeguarding financial stability. Key features of the pilot include:

• Vietnamese Ownership and Control: Only Vietnamese companies are permitted to operate licensed exchanges and issue crypto assets. Foreign ownership in these service providers is capped at 49%.
• Strict Capital and Staffing Requirements: To obtain a license, a company must have a minimum charter capital of VND 10 trillion (approximately US$379 million), with at least 65% of that capital coming from institutional investors. The resolution also outlines stringent requirements for leadership and technology staff.
• Real-Asset Backing and Foreign-Investor Focus: Issued crypto assets must be backed by real assets, excluding securities or fiat currencies. Initially, these assets can only be offered and traded among foreign investors through licensed service providers.
• Transactions in Vietnamese Dong: All transactions, including issuance, trading, and payments, must be conducted in Vietnamese dong.

This pilot program is a stepping-stone toward a more comprehensive legal framework. A new law, passed in June and set to take effect on January 1, 2026, will formally recognize digital assets. The government views blockchain and digital infrastructure as a priority for achieving its goal of double-digit economic growth.

While the pilot program aims to bring structure to the market, it also introduces a key challenge for local traders: a six-month grace period after the first license is issued, after which trading on unlicensed exchanges will be considered illegal. This creates a clear incentive for market participants to transition to the new regulated system, ensuring the government can better supervise capital flows and collect taxes from this previously untaxed sector.

This move demonstrates Vietnam’s pragmatic approach to embracing the digital economy. By not outright banning crypto, but instead creating a controlled and cautious environment, Vietnam aims to unlock digital value, attract investment, and integrate its financial market with global standards. This pilot sets the stage for a new era of regulated and transparent crypto activity in the country.