- Vietnam rolls out a 5-year licensing pilot for crypto exchanges.
- Banks and securities firms signal strong interest in crypto services.
- New rules tighten investor access and cash flow controls.
Vietnam is taking a major step toward establishing a clear crypto regulation framework. Earlier this week, the Ministry of Finance announced new licensing rules for crypto exchanges and trading platforms. These proposed rules focus on how licenses will be issued, modified, or revoked, thus marking a clear path to formal oversight of the crypto industry.
Under the new regulatory framework, crypto exchanges will be under the supervision of the State Securities Commission. The commission has already issued detailed guidance on application requirements and approval processes. This move comes as part of Vietnam’s broader efforts to bring legal clarity to the industry.
Vietnam Tightens Regulations for Crypto Exchanges
According to local media reports, the Ministry of Finance of Vietnam has issued a new regulatory framework for crypto exchanges. The framework includes three administrative processes focusing on how crypto exchange licenses are granted, modified, or withdrawn.
This marks a clear break from years of loose oversight. Over the past few years, the crypto industry in the country has grown remarkably without any solid regulation. This has forced the authorities to draft new rules to foster the market’s growth, while protecting investors from inherent threats and fraud.
Reportedly, the new crypto regulation has already attracted strong interest from traditional finance. More than 10 banks and securities firms have expressed interest in entering the crypto space once the licensing framework is finalized. For instance, SSI Securities launched SSI Digital Technology JSC in 2022. Since then, the platform has been expanding its focus on blockchain and digital asset initiatives.
Unveiling the Five-Year Pilot Program
According to the Finance Ministry’s statement, the authority has already begun accepting applications from businesses looking to offer crypto services in the country. The rollout of Decision No.96-QD-BTC has drawn the attention of crypto exchanges and trading services providers to carry out the licensing procedures.
The proposal launches a five-year pilot program, which allows only registered crypto exchanges to operate in the country. According to the regulations, the companies eligible for a license must be set up as limited liability or joint stock firms, meet strict capital requirements, and be owned by regulated institutions like banks, securities firms, or insurance companies. These institutions must control at least 65% of the company, including 35% owned by at least two qualifying entities.
The rules also set strict guidelines for how investors can participate in cryptocurrency trading. The authority is also making clear regulations on how money flows in and out of the market. All investors, whether foreign participants or local traders, are required to trade through registered platforms via their official trading accounts.
In addition, foreign traders are required to hold a VND-denominated cash account at a locally licensed bank authorized to provide foreign exchange services. The traders can carry out all payments, deposits, and withdrawals linked to crypto via this account.
Emerging as a Major Crypto Market in APAC
Vietnam is already one of the most active crypto markets in the Asia-Pacific region. Recent data shows that the country’s crypto transactions totalled between $220 billion and $230 billion during the last financial year. It has also reported an average daily transaction of $600 million.
As per reports, Vietnam is currently ranked third among the largest APAC crypto markets. The country accounts for about 10% of the region’s total transaction value, behind only India and South Korea.
