Vietnam Launches Five-Year Pilot for Crypto Trading with Strict Regulations

Vietnam has approved a five-year pilot program for cryptocurrency trading, marking a significant shift in its approach to digital assets. The government will allow only domestic companies to operate trading platforms, with all transactions required to settle in Vietnamese dong. Token issuance is restricted to Vietnamese firms, though they may sell exclusively to foreign investors.

Entry barriers are notably high: exchange operators must hold at least 10 trillion dong ($379 million) in capital, with institutional investors required to contribute a minimum 65% stake. Foreign ownership in trading platforms is capped at 49%. This cautious framework emerges despite Vietnam's position as a global leader in crypto adoption—ranking fifth in Chainalysis' index last year, with an estimated 17 million citizens holding over $100 billion in digital assets.

The pilot program represents a calculated opening for both domestic participants and foreign capital, balancing market potential with regulatory control. While no specific cryptocurrencies are named in the announcement, the MOVE could indirectly benefit major assets like BTC and ETH through increased institutional participation.