Vietnam has approved a five-year pilot program allowing regulated cryptocurrency trading platforms to operate in the country, Bloomberg reported. The initiative, set to begin this month, establishes strict requirements for domestic companies and imposes limits on foreign ownership. Under the new framework, all issuance, trading and settlement of digital assets must be conducted in Vietnamese dong.
The rules restrict participation to platforms licensed by the government, with foreign investors allowed to hold a maximum of 49% ownership in any exchange. A six-month transition period will follow the granting of the first license, after which Vietnamese citizens trading on unapproved platforms will be considered in violation of the law.
Domestic Control and Foreign Ownership Caps
The program limits the operation of cryptocurrency exchanges to firms based in Vietnam. To qualify, applicants must meet capital requirements and demonstrate institutional backing. Foreign companies may participate through joint ventures, but controlling stakes are reserved for domestic partners.
Officials said the restrictions are aimed at protecting national interests and ensuring oversight of digital asset transactions. Foreign investors may still trade on licensed exchanges, but they cannot exceed the ownership cap.
Compliance and Enforcement Measures
The new rules also mandate that technical teams of licensed exchanges include certified specialists, signalling an emphasis on professional standards. In addition, all tokens issued under the program must be backed by tangible assets, a move intended to prevent speculative or unsupported digital currencies from entering the market.
Authorities have warned that after the grace period, unlicensed trading will be treated as a criminal offence. The penalties are expected to apply to both individuals and businesses that engage in transactions outside of the regulated framework.
Testing Ground for Regulation
Vietnamโs move reflects a cautious approach to integrating digital assets into its financial system. By launching a controlled pilot program, the government aims to study the economic and regulatory impact of cryptocurrencies while limiting potential risks such as fraud, capital flight or money laundering.
The program comes at a time when several Asian economies are tightening oversight of the crypto sector. Neighbouring countries, including China, have taken a restrictive stance, while others, such as Singapore, have implemented licensing regimes with varying degrees of openness.
Officials in Hanoi have not disclosed how many licenses may be issued or which companies have applied. At the end of the five-year trial, regulators are expected to review the results before deciding whether to expand, amend or discontinue the framework.
