Vietnam Proposes Cryptocurrency Regulation
In a significant development in the realm of digital finance, Vietnam’s Ministry of Finance has unveiled a proposal aimed at regulating cryptocurrency transactions by imposing a 0.1% tax on each transfer. This tax would apply similarly to how stock transactions are handled in the country, and it is now open for public feedback as part of a broader effort to establish a clear regulatory framework for digital assets.
Taxation Details
The new guidelines specify that both resident and non-resident individual investors engaging in cryptocurrency trading through licensed platforms will be subjected to this levy based on the total value of their transactions. By adopting a turnover-based tax system, this approach is designed to streamline compliance for investors, eliminating the complexities of calculating net gains for each trade. In addition to this tax, it is also noteworthy that the proposal maintains an exemption for cryptocurrency transactions from value-added tax (VAT), reinforcing the government’s classification of these digital assets as financial instruments rather than taxable goods or services.
Impact on Corporate Investors
Corporate investors in Vietnam will also be affected by this proposed tax framework. Domestic companies involved in crypto transactions will incur a corporate income tax of 20% on their net profits, which are determined after deducting the costs associated with purchases and related transactions. Conversely, foreign corporations will similarly face the 0.1% tax on the value of their crypto transfers.
Legal Framework and Licensing Requirements
To support the legal groundwork for these regulations, lawmakers are in the process of formally defining crypto assets. The draft states that these assets are
“digital assets that rely on cryptographic or similar technologies for issuance, storage, and transfer verification,”
providing clarity to stakeholders in a growing market. Furthermore, stringent licensing requirements for digital asset exchanges will be enforced, including a minimum charter capital of 10 trillion Vietnamese dong (approximately $408 million) and a restriction on foreign ownership, capped at 49%.
Broader Strategy for Digital Assets
This initiative forms part of Vietnam’s broader strategy, announced in September 2025, to pilot regulatory approaches for digital asset markets over the next five years. Officials emphasize that the insights gained during this pilot phase will shape future legislation, as Vietnam navigates the dual objectives of fostering innovation and ensuring investor protection in a rapidly evolving cryptocurrency landscape.
