Vietnam proposes fines up to $77,000 against crypto market manipulation

The proposal is outlined in a draft decree released this week for public comment. The move comes in response to a recent government resolution launching a pilot program for the crypto asset market in Vietnam.

Under the draft decree, service providers that fail to verify investor identities when opening accounts could be fined between VND300,000 and VND500,000 ($11.5 to $19.2).

Investors who do not properly register accounts or transfer their crypto holdings to licensed custodians face much steeper penalties ranging from VND100 million to VND200 million ($3,850 to $7,700).

Organizations providing crypto asset services may face fines up to VND1 billion (approximately $38,500) if they fail to ensure that advertising and marketing information about crypto assets is accurate, complete, clear, and not misleading.

More serious offenses, such as manipulating the crypto market or operating unlicensed exchanges, could incur fines ranging from VND1.5 billion to VND2 billion ($57,800 to $77,000). Service providers found in violation may also face suspensions lasting from three to five months.

The same penalty range is proposed for organizations providing crypto asset services that engage in violations such as proprietary trading of crypto assets, offering custody services, or providing platforms for issuing crypto assets without proper licensing.

These monetary penalties also apply to crypto asset services provided without going through licensed providers in Vietnam; conducting advertising or marketing related to crypto assets without a license; or failing to comply with regulations on information system security and the protection of customer assets.

Organizations that do not segregate customer crypto holdings from their own assets or that fail to monitor trading activities could face fines between VND1 billion and VND1.5 billion ($38,500 to $57,800).

The same penalties apply to failures in monitoring crypto asset trading activities or in ensuring that only eligible participants engage in issuance or trading.

Violations involving anti-money laundering rules, counter-terrorism financing, or the prevention of weapons proliferation would be penalized under separate government regulations governing the financial and banking sectors.