Vietnam is advancing one of Southeast Asia’s most tightly controlled crypto exchange frameworks, with a five-year pilot program designed to shift domestic trading from offshore platforms to a small group of licensed local exchanges.
The pilot was established under Resolution No. 05/2025/NQ-CP, which created a formal licensing regime for crypto-asset trading platforms and set strict conditions around capital, ownership, payments, custody and investor access.
Reuters reported that five firms had already passed the Finance Ministry’s initial qualification round, including affiliates of major domestic banks Techcombank, VPBank and LPBank, along with VIX Securities and Sun Group. The first licensed venues are expected during the 2026 pilot phase, although final approvals and launch timing remain subject to regulators.
What the New Licensing Pilot Requires
Exchanges Must Be Local and Heavily Capitalized
The rules are designed for large, institution-backed players rather than small startups. Under Resolution 05, an applicant must be a Vietnamese enterprise registered to provide crypto-asset services as either a limited liability company or a joint-stock company.
Applicants must also meet a minimum contributed charter capital requirement of VND 10 trillion, equal to roughly $380 million to $400 million depending on exchange rates. That threshold makes Vietnam’s pilot one of the more demanding crypto licensing frameworks in the region.
The ownership rules are also strict. At least 65% of charter capital must come from institutional investors, while more than 35% must be held by banks, securities companies, fund management firms, insurance companies or technology companies. Foreign ownership is capped at 49%, effectively requiring local control.
That structure gives regulators a clear supervisory target. It also means Vietnam’s first legal crypto exchanges are likely to look more like bank-backed financial market infrastructure than crypto-native trading venues.
Trading Must Settle in Vietnamese Dong
One of the pilot’s most important limits is that crypto transactions must be conducted in Vietnamese dong. That matters because Vietnam is not simply legalizing offshore-style crypto trading inside the country.
Instead, the government is trying to build a domestic market that regulators can monitor through local currency rails, local institutions and approved service providers. This could give authorities more visibility over trading flows, tax compliance and capital movement.
The framework also excludes fiat currencies and securities from the crypto-asset category, which could limit stablecoin-style products and narrow what licensed platforms can list during the pilot.
Offshore Exchange Use Could Become Illegal
A Grace Period Is Expected
The most disruptive part of the plan is the move to restrict overseas crypto trading. Vietnam is drafting rules that would ban citizens from using foreign crypto exchanges, citing concerns about capital flight and weak oversight.
The framework is expected to include a transition period. A six-month grace period is expected to follow the issuance of the first license, after which trading on unlicensed platforms would be considered illegal for Vietnamese investors and could trigger administrative or criminal penalties.
That grace period will be critical. Vietnam has a large and active crypto user base, and many traders already rely on global exchanges for liquidity, derivatives, stablecoins and broader token access. Moving that activity onto local venues will not be easy.
Enforcement Is the Biggest Unknown
The main question is how aggressively Vietnam will enforce offshore restrictions. Blocking access to foreign exchanges can push activity into VPNs, peer-to-peer markets or informal channels if domestic platforms do not offer enough liquidity and product depth.
That is the policy tradeoff. Regulators want capital-flow control, tax visibility, anti-money-laundering supervision and investor protection. Users want deep markets, low fees, strong apps, broad token listings and stablecoin liquidity.
If domestic exchanges cannot compete, enforcement may become difficult. Vietnam’s challenge is to make the regulated option attractive enough that users migrate willingly, not only because offshore access becomes risky.
Why Vietnam Is Moving Now
Vietnam is one of the world’s most active crypto markets. Chainalysis data cited by Reuters showed Vietnam ranked among the largest crypto markets globally, with trading volumes above $200 billion in the year through June.
That scale helps explain the government’s urgency. A market of that size can no longer sit outside formal supervision, especially if officials are concerned about capital outflows, scams, tax leakage or consumer losses.
The new pilot also fits Vietnam’s broader digital economy ambitions. A licensed crypto market could keep trading fees, compliance jobs and financial technology development inside the country. It could also give regulators real data on how crypto behaves before they decide whether to create a permanent regime.
Risks for Users and Exchanges
For users, the main benefit is clearer legal protection. Licensed exchanges should face custody, cybersecurity, capital and reporting requirements that offshore platforms may not meet under Vietnamese law.
The downside is reduced choice. VND-only settlement, local licensing, limited product lists and offshore restrictions may leave some traders with fewer markets than they currently use.
For exchange applicants, the opportunity is large but expensive. The VND 10 trillion capital threshold creates a high barrier to entry. It also means only a handful of well-funded firms are likely to compete during the pilot, which could reduce innovation if the market becomes too concentrated.
What Comes Next
The next milestone is the first actual exchange license and launch. Vietnam has already screened five firms in an initial qualification round, but final approvals and operating conditions will determine how quickly the pilot becomes usable for ordinary traders.
After that, the six-month grace period will become the key test. Regulators will need to show how offshore restrictions work in practice, while licensed platforms will need to prove they can provide enough liquidity and user experience to compete with global exchanges.
For Vietnam’s crypto market, the message is clear. The country is not banning digital assets outright. It is trying to bring them under state-supervised, VND-based market infrastructure. Whether users embrace that shift will depend on how balanced the final rollout feels.
Disclaimer: This article is for informational purposes only and does not constitute financial, investment, or legal advice. Always conduct your own research before making any investment decisions.
