Vietnam Launches Five-Year Pilot Program to Regulate Crypto Market
Vietnam, one of the leading nations globally in cryptocurrency adoption, has introduced a comprehensive five-year pilot program imposing strict regulations on its crypto industry. The initiative aims to establish a controlled and transparent environment for crypto asset trading and issuance.
Regulatory Framework and Transaction Requirements
Deputy Prime Minister Ho Duc Phoc signed a resolution establishing a detailed regulatory framework for the crypto market, effective immediately. Under this pilot, all crypto transactions—including issuance, trading, and payments—must be conducted exclusively in Vietnamese dong. Furthermore, only Vietnamese enterprises registered as limited liability or joint stock companies under the Law on Enterprises are authorized to issue crypto assets.
Restrictions on Crypto Asset Backing
The pilot program prohibits issuance of crypto assets backed by fiat currencies or securities, mandating that all crypto assets be backed solely by real assets. This move aims to mitigate risks associated with fiat-backed tokens and enhance market stability.
Additionally, crypto assets may only be offered and issued to foreign investors through crypto asset service providers (CASPs) licensed by Vietnam’s Ministry of Finance.
Capital and Personnel Standards for Providers
The resolution sets rigorous capital requirements for CASPs, requiring a minimum capital contribution of 10 trillion Vietnamese dong (approximately $379 million). This capital must come from at least two entities representing commercial banks, securities firms, fund management companies, insurance companies, or technology enterprises.
Applicants must demonstrate profitable business operations for two consecutive years before applying for a license. Leadership qualifications are also specified: CEOs must have at least two years’ experience in finance-related sectors, while chief technology officers must have five years of relevant experience. Additionally, a minimum of 10 qualified technology staff members is required.
Context and Strategic Implications
This pilot program follows the recent approval of Vietnam’s Law on Digital Technology Industry in June, which will take effect in January 2026. The law grants legal recognition to crypto assets and underscores Vietnam’s ambition to develop into a regional digital technology hub.
The government emphasized that the pilot’s implementation will prioritize caution, safety, transparency, and the protection of all market participants’ rights.
FinOracleAI — Market View
Vietnam’s introduction of a stringent, five-year crypto pilot program reflects a cautious but progressive approach to regulating a rapidly growing market. By mandating transactions in local currency and restricting issuance to domestic entities, the government aims to maintain monetary sovereignty and reduce systemic risks associated with fiat-backed tokens.
Strict capital and staffing requirements raise entry barriers, likely consolidating market participation to well-capitalized and experienced firms, which could enhance market stability but limit smaller players. The prohibition on fiat-backed crypto assets may reduce speculative activities but could also constrain innovation.
Investors and market observers should monitor the pilot’s enforcement details and the forthcoming implementation of the Law on Digital Technology Industry in 2026 for further regulatory clarity and market development.
Impact: Neutral
