Vietnam’s Regulatory Framework for Cryptocurrency
Vietnam is set to initiate its regulatory framework for cryptocurrency with the anticipated launch of its first officially licensed crypto asset service providers by 2026. This announcement was made by the Deputy Minister of Finance, Nguyen Duc Chi, during a recent meeting in Vienna with the Executive Director of the Austrian Financial Market Authority (FMA), Mariana Kühnel. The two parties discussed enhanced oversight mechanisms for financial markets and prospects for future collaboration.
Establishing a Digital Asset Marketplace
As part of a five-year pilot program aimed at establishing a digital asset marketplace, Vietnam has laid down the legal groundwork for crypto operations. The Ministry of Finance initiated the licensing process in January, outlining the requirements for crypto asset trading platforms, which include a minimum capital threshold of 10 trillion dong—equivalent to approximately $383 million. At least 65% of this capital must be derived from institutional investors, and foreign ownership in these exchanges is capped at 49%.
To date, five companies have successfully passed the initial evaluation phase, although none have yet obtained a final trading license, as was confirmed on August 30. The approved entities need to establish robust governance structures and meet benchmarks in staffing, infrastructure, and cybersecurity before they can engage in crypto trading.
Collaboration with Austrian Financial Authorities
The conversation with Austrian officials centered on how financial authorities can evolve to oversee emerging technologies and innovative asset classes. The FMA’s role encompasses the regulation of various financial entities including banks and investment funds, with a focus on investor protection and anti-money laundering practices.
Chi noted the goal of commencing regulated crypto activities by the third quarter of 2026. Efforts are underway to integrate insights from European regulators as part of refining Vietnam’s regulatory strategies.
New Regulatory Decrees and Compliance
Additionally, a new regulatory decree that took effect on September 1 establishes penalties for unauthorized crypto services and failures in customer verification processes, ensuring a compliant trading environment for domestic investors.
Once licensed platforms commence operations, domestic investors will be mandated to execute trades exclusively through Ministry-approved providers. A transition period of six months will be initiated following the issue of the first crypto asset licenses, during which regulations will be reinforced.
Support for Small and Medium-Sized Enterprises
Discussions between the Vietnamese and Austrian financial authorities have also highlighted the importance of supporting small and medium-sized enterprises, which constitute a significant portion of Vietnam’s business landscape. Plans are in place to restructure trading boards to enhance oversight and transparency within the financial markets, further fortifying Vietnam’s commitment to an organized and supervised crypto industry framework in alignment with global standards.
