Vietnam revs up for regulated crypto asset market

As the race intensifies, key questions are emerging around oversight mechanisms and whether participating institutions can ensure a transparent and secure trading environment.

In January, Vietnam began piloting a licensing regime for organizations operating crypto asset exchanges, representing the country's first formal step toward regulating the fast-growing sector after years in a legal grey area, according to the Ministry of Finance.

The ministry has received seven applications for operating licenses.

Of these, five have been assessed as complete and compliant with regulatory requirements.

They include VIX Crypto Asset Exchange JSC, Loc Phat Vietnam Crypto Assets Exchange JSC, Vietnam Prosperity Crypto Assets Exchange JSC, Techcom Crypto Exchange JSC, and Vietnam Digital Asset JSC.

Strong backers enter the race

The applicants are backed by notable financial and corporate players, including commercial banks such as Techcombank, VPBank, and LPBank, alongside VIX Securities JSC and Sun Group.

The involvement of Sun Group, in particular, marks a significant new development in the digital asset exchange landscape.

Vietnam Digital Asset JSC was established earlier this year with a charter capital of VND1 trillion (US$38 million).

Its founding shareholders include Sun Group with a 64-percent stake, Innovation Technology Services Co. Ltd. with a 35-percent stake, and PetroVietnam Securities with one percent.

The company has completed a comprehensive operational framework comprising 10 core procedures, covering risk management, cybersecurity, custody and asset management, trading and settlement, proprietary trading, anti-money laundering and counter-terrorism financing, internal controls, transaction monitoring, and dispute resolution mechanisms.

However, regulatory requirements stipulate a minimum capital of VND10 trillion ($380 million) to operate a crypto exchange.

To meet this threshold, the firm has proposed a 10-fold capital increase through a planned share issuance.

The other applicants are also accelerating preparations.

Vietnam Prosperity Crypto Assets Exchange JSC, part of VPBank’s ecosystem, is scaling up from an initial capital base of VND25 billion ($950,000) to the required VND10 trillion.

Meanwhile, the remaining companies have also not yet fully met the capital requirements.

Beyond capital

A recent survey by Kyros Ventures, Coin68, and BingX highlights investor priorities when they choose an exchange, including security (70.5 percent), insurance and compensation mechanisms (69.5 percent), and liquidity (69.5 percent).

These expectations set a high bar for domestic platforms, which must demonstrate robust cybersecurity, transparent insurance funds, and deep liquidity–areas where global exchanges like Binance, BingX, and Bybit have built a strong reputation.

Therefore, the crypto asset market is becoming increasingly competitive, and while charter capital is very important, it is not the only decisive factor.

Indeed, some Vietnamese firms face hurdles beyond finances.

Dolphinex Digital Asset Services JSC, affiliated with MBBank’s ecosystem, has yet to meet regulatory requirements due to incomplete documentation, including untranslated personnel qualifications.

Jlo Tran, co-founder and CEO of Vietnam Blockchain Innovation Academy, stated that in practice, when working with international partners, their main concern is not ‘Does Vietnam allow it?’ but rather ‘Is there a compatible operational standard and supervision mechanism? Is there a system to protect investors and manage systemic risks? Is there a framework to tokenize real assets in a way that reduces legal risk and enhances transparency?’

These questions need to be answered through concrete actions rather than mere policy statements.

To Tran Hoa, deputy head of the Department of Securities Market Development at the State Securities Commission of Vietnam, stated that Vietnam aims to establish a centralized crypto asset market.

Accordingly, the regulatory framework has been designed based on international practices to facilitate the development of a foundational market with two main segments.

In the primary market, Vietnamese enterprises are encouraged to issue crypto assets, backed by real assets such as corporate bonds, real estate, commodities, or private credit, to foreign investors, with a view to attracting international capital to support national economic growth and achieving double-digit growth targets.

For the secondary market, which carries higher risks, regulators plan to create a ‘buffer zone’ during the pilot phase.

Under this approach, domestic investors who hold crypto assets and foreign investors are allowed to open accounts with licensed service providers to trade.

During the pilot stage, regulators will coordinate with relevant ministries, agencies, and the Blockchain Association to provide education and awareness campaigns for both the public and businesses, before implementing a more comprehensive regulatory framework.

For organizations applying to become crypto asset service providers, the Ministry of Finance has established very high standards and requirements, drawing on international regulations and Vietnam’s practical conditions.

Core benefits of domestic exchanges

Experts pointed to three major advantages of establishing licensed domestic exchanges.

The first one is legal protection.

Accordingly, investors would have recourse in case of disputes, unlike on many opaque international platforms.

Capital retention comes as the second benefit.

It means funds would circulate within Vietnam’s banking system instead of flowing through unregulated channels.

The third benefit is cleaner advertising.

The presence of legitimate exchanges could curb illicit promotions tied to gambling and pirated content.

Managing risks, striking balance

Despite the optimism, challenges remain.

Tran Xuan Tien, general secretary of the Ho Chi Minh City Blockchain Association, stressed the importance of balancing regulatory control with flexibility to avoid stifling innovation or lagging behind global trends.

Jlo Tran pointed out some key risks such as segregating client assets from company funds, managing deposits and withdrawals, preventing insider trading, and ensuring system resilience against overloads or cyberattacks.

Ultimately, the success of Vietnam’s crypto market will depend on whether licensing standards can enforce not just financial strength, but also technological competence, governance quality, and risk management.

Only then can a sustainable and trustworthy ecosystem take shape.