Vietnam’s Digital Asset Exchange Pilot Signals Ambitious Step Toward Global Financial Integration

Economic

Cryptocurrency

Summary:

Vietnam has launched a five-year pilot program for digital asset exchanges, aiming to establish legal clarity, attract investment, and integrate blockchain into its financial system while ensuring investor protection...

Vietnam’s Growing Role in Digital Asset Adoption

Vietnam has rapidly emerged as one of the world’s most active markets for digital assets. In 2024, approximately 17 million Vietnamese citizens participated in crypto-related activities, with total transaction volumes estimated at $1 trillion. The country also ranked among the global top five in public interest, top three in international exchange use, and top six in decentralized finance activity, with a domestic market valued at over $100 billion.

Yet, despite this scale, the absence of a comprehensive legal framework has constrained development. Most trading has occurred on overseas platforms, leaving domestic investors exposed to fraud, money laundering, and tax evasion risks. The pilot exchange initiative directly addresses these vulnerabilities by offering a regulated alternative that strengthens transparency and enhances investor confidence.

Regulatory Framework and Pilot Design

Prime Minister Phạm Minh Chính’s August 1 decision to establish an International Financial Center set the stage for the pilot, which will be based in Ho Chi Minh City and Đà Nẵng. The Ministry of Finance has since drafted a resolution outlining the exchange model, with blockchain technology defined as the core infrastructure for trading and supervision.

The pilot is designed for five years, with stringent requirements for participants. Firms must demonstrate minimum paid-in capital of 10 trillion VND, of which 65% must come from institutional investors. At least 35% of this capital must originate from banks, securities firms, insurers, investment funds, or technology companies. Foreign ownership will be capped at 49%, balancing international participation with domestic oversight.

Exchanges will be permitted to list around 50 types of digital assets, including high-liquidity tokens such as Bitcoin, Ethereum, and stablecoins like USDT and USDC. In addition, real-world asset–backed tokens will be allowed, particularly for foreign investors, marking Vietnam’s alignment with global tokenization trends.

Investor Protection and Taxation

The pilot emphasizes investor safeguards, including mandatory electronic identification (eKYC) and strict anti-money laundering protocols. Legal experts argue that these measures will not only reduce fraud but also create a clearer channel for tax collection, ensuring the state benefits from growing digital capital flows. By establishing transparent accounting and reporting standards, regulators aim to differentiate between corporate fundraising and project-specific financing, thereby reducing misuse.

This framework also provides a mechanism for startups to return to Vietnam rather than relocating to Singapore, a regional hub for blockchain innovation. A clearer legal environment could catalyze the development of a robust fintech ecosystem, attracting foreign capital while supporting domestic innovation.

Key Industry Players and International Partnerships

The pilot will initially license about five exchanges to ensure competition without fragmenting oversight. Expected participants include SSI, TCBS, and MB Bank. MB has already signed a memorandum of understanding with Dunamu, the operator of South Korea’s Upbit exchange, highlighting the international linkages that Vietnam is fostering. This partnership underscores a strategic intent to not only build trading infrastructure but also develop investor protection systems modeled on advanced markets.

Complementing the pilot, Vietnam’s National Assembly has passed the Digital Technology Industry Law, effective January 1, 2026. This law creates a regulatory umbrella for blockchain, AI, digital platforms, and tokenized assets, establishing a long-term legal foundation for digital finance. Together with the International Financial Center initiative, the digital asset pilot positions Vietnam as a potential leader in regulated blockchain adoption within Asia.

Opportunities and Risks in a Five-Year Horizon

The pilot carries both promise and challenges. On one hand, it could transform digital assets into a credible fundraising channel for enterprises, increase foreign investment, and integrate Vietnam into the global blockchain economy. On the other, success depends on strict regulatory enforcement, effective investor protection, and the ability to balance innovation with systemic stability.

The cause-and-effect relationship here is clear: a transparent, legally defined market is likely to encourage capital inflows and entrepreneurial activity, while regulatory gaps would correlate with continued risks of fraud and capital flight.

By approving a five-year trial of digital asset exchanges, Vietnam has signaled its determination to harness blockchain for financial modernization. If implemented effectively, the initiative will not only eliminate the “grey zone” of unregulated trading but also provide a structural boost to the country’s broader digital economy. Positioned at the intersection of innovation and regulation, Vietnam’s experiment could set a benchmark for emerging markets seeking to balance growth opportunities with investor protection in the era of decentralized finance.

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