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| Bitcoin, the most popular cryptocurrency in the world__Photo: REUTERS/VNA |
A booming yet legally unprotected market
Although Vietnam has never officially recognized digital assets or cryptocurrencies as legal property under its legal system, the crypto market has flourished for years. Millions of citizens have quietly participated in trading and investing in digital assets via international platforms such as Binance, OKX, and Bybit, largely in the absence of any legal framework to protect their rights.
Nguyen Dung, a resident of Ho Chi Minh City, shared with Thanh Nien online that he once lost his entire digital assets due to the lack of legal recourse. “In 2018, I heard a lot of talk about Bitcoin, so I opened an account on Poloniex and spent VND 12 million (around USD 520 at the-then exchange rate) to buy Bitcoin, later sold it for VND 36 million. Then I bought more Bitcoin and ETH worth about USD 440, but suddenly lost access to my account. At the time, Bitcoin was priced at around USD 18,000 and is now over five times that, above USD 100,000. The loss was substantial, but I didn’t know where to turn for help since the Government didn’t recognize these assets, and the law offered no protection,” Dung said.
According to a Wall Street Journal report (May 2023) cited by Thanh Nien, Vietnam ranked fourth globally in terms of digital currency trading volume on Binance, the world’s largest crypto exchange, reaching an estimated USD 20 billion, 90 percent of which involved futures contracts. Meanwhile, crypto payment gateway Tripple-A reported that in 2023, nearly 21 million Vietnamese owned digital currencies, accounting for 21.2 percent of the population, even higher than the number of crypto owners in the United States with 15.6 percent. Similarly, data from Chainalysis, a leading blockchain analysis firm, shows that from 2022 to 2024, Vietnam recorded over USD 100 billion in annual crypto asset inflows, more than twice the country’s annual foreign direct investment.
These figures reflect the tremendous demand among the public but until now all related activities have taken place in a legal “gray area”—unregulated and unrecognized by Vietnam’s law. Speaking at the Vietnam Investment Forum 2025 recently held in Hanoi, To Tran Hoa, Deputy Head of the Department of Securities Market Development under the State Securities Commission of Vietnam, noted: “We have received numerous requests for verification of transactions related to digital assets and digital currencies, and nearly 90 percent of these cases involved elements of fraud.” He emphasized that this was one of the reasons that prompt the urgent need to establish a legal framework to protect investors and manage capital flows more effectively.
Beyond legal risks, the lack of regulation has also led to massive tax losses for the Government. According to Assoc. Prof. Dr. Nguyen Huu Huan from the Ho Chi Minh City University of Economics, the total value of crypto transactions conducted by Vietnamese citizens in 2024 reached nearly USD 800 billion. “If taxed at the rate of 0.1 percent like securities transactions, the Government could be missing out some USD 800 million annually,” he said. Notably, as long as the crypto market remains in a lawlessness, fraudsters will continue to exploit loopholes because these assets are neither acknowledged nor protected by law.
Legal breakthrough: crypto officially recognized and regulated
After years of existence without a legal foundation, June 2025 marked a turning point when digital assets in general and cryptocurrencies in particular were officially recognized in Vietnam.
On June 14, the 15th National Assembly passed the Law on Digital Technology Industry. According to the Ministry of Science and Technology, the drafter of the Law, Vietnam is the first country in the world to enact a law exclusively dedicated to the digital technology industry. The Law introduces definitions, classifications, and a legal framework for digital assets, including crypto assets and virtual assets. It also authorizes the Government to issue detailed regulations on technical standards, consumer protection, cybersecurity, and transaction transparency concerning these assets.
Just two days earlier, on June 12, the Prime Minister signed Decision 1131/QD-TTg, approving the List of Strategic Technologies and Strategic Technology Products. Accordingly, digital assets, digital currencies and cryptocurrencies are categorized under blockchain technology, alongside blockchain infrastructure and traceability systems. This marks the first time that cryptocurrencies are officially recognized as a national strategic technology product, laying the groundwork for support policies and formal regulation.
According to lawyer Truong Thanh Duc, Director of ANVI Law Firm, the new policy represents a significant shift. “Previously, Vietnam’s law neither acknowledged nor explicitly banned cryptocurrencies. If a person lost their assets, there was no legal basis for protection. Now, under the new law, cryptocurrencies are recognized as a type of asset. This means that citizens can legally trade, transfer, donate, or inherit them, and be protected just like with other assets,” Duc told Thanh Nien.
To complete the legal framework, the Government has tasked the Ministry of Finance to draft a Resolution to pilot a cryptocurrency market in Vietnam with a key provision on conditions for licensing cryptocurrency exchange operations. Specifically, exchanges must have a minimum paid-in charter capital of VND 10 trillion (approx. USD 385 million). Of this amount, at least 35 percent must come from at least two institutional investors operating in commercial banking, securities, insurance, technology or fund management. Notably, the remaining 65 percent must also come from institutions, i.e., individual investors are not permitted to contribute capital for operating crypto exchanges.
Explaining this, To Tran Hoa stated: “Commercial banks, securities, insurance, tech or fund management companies have the strong financial capacity and technological infrastructure to support exchange operations from day one—without having to wait for further investment or testing.”
Despite recognizing the market’s potential, experts remain cautious. Doan Mai Hanh, Head of Sales and Trading, Market Division – Investment Banking at Techcom Securities, emphasized the risks: “Crypto is still full of pitfalls, from money laundering and cyberattacks to pricing uncertainties. Strict regulatory requirements are absolutely necessary during the pilot phase.”
Sharing his view, Dr. Nguyen Huu Huan noted that once the Government has defined digital assets and digital currencies as strategic technologies, future development may be tied to the emerging International Financial Center. “This paves the way for digital currencies and digital assets to be officially listed and traded,” he said.
Dr. Dang Minh Tuan, President of the Vietnam Blockchain Union, also supported the idea of piloting digital currency exchanges after a sandbox model. He cautioned, however, that such trials should not be limited to financial centers. Instead, the Government should define clear criteria, timeframes, and participants—allowing fair competition among qualified entities.
Data presented at the Vietnam Investment Forum 2025 confirmed that demand for digital assets in Vietnam is exceptionally high. Public interest and investment are overwhelmingly concentrated on crypto assets, especially coins. Once the legal framework is in place, Vietnam’s crypto market, driven by domestic capital and investor interest, could develop rapidly, creating new investment channels, facilitating capital mobilization for enterprises, and generating tax revenue for the Government.- (VLLF)
