Vietnam has launched a 5-year crypto trading pilot aimed at regulating a previously unregulated digital asset market.
Features of the Vietnam Crypto Trading Pilot
The pilot is a closed experiment allowing only government-approved entities to operate. All crypto-related transactions must be conducted in Vietnamese dong (VND). All crypto assets must be backed by real underlying assets.
Capital, Ownership and Compliance Rules
Exchange operators must have a capital requirement of at least 10 trillion VND (approximately $379 million), with at least 65% coming from institutional investors. Foreign ownership of exchanges is capped at 49%. Strict anti-money laundering and cybersecurity regulations must also be adhered to.
Crypto Adoption and Regulatory Context in Vietnam
Vietnam has about 17 million crypto holders, nearly 18% of its population. However, until recently, there was no legal framework for crypto activities. The recent passage of the Digital Technology Law recognizes digital assets as property and lays the groundwork for a regulated market.
Vietnam's crypto trading pilot marks an important step toward creating a regulated market, but its success will depend on attracting capital and the response from investors.
