The Vietnamese government has officially approved a five-year pilot program to regulate crypto asset trading, initiating its first step toward integrating digital assets into its financial ecosystem. The purpose of the pilot program is to bring structure to a sector that has thrived informally, despite the absence of clear legal guidelines.
According to Bloomberg, under the new government resolution, only Vietnamese companies can establish and operate crypto trading platforms. Transactions, issuances, and payments must be conducted exclusively in the Vietnamese dong. Issuers must also be local firms, and their crypto assets must be backed by tangible assets, excluding fiat money and securities, and can only be issued to foreign investors.
Strict Conditions for Exchange Operators
The government has set a high entry barrier for exchange providers. To qualify, firms must have a minimum capital of 10 trillion dong (approximately $379 million), with at least 65% of that coming from institutional investors. At least two established companies, such as fund managers, securities firms, and commercial banks, must collectively hold more than 35% of the exchange provider’s ownership.
Foreign ownership in any crypto trading platform is capped at 49%, and both institutional and individual investors are limited to investing in just one exchange provider. Only Vietnamese citizens who already own crypto and foreign investors will be allowed to open accounts on these licensed platforms.
Vietnam’s pilot program marks a key regulatory step in its high crypto adoption journey. Through a regulated trading environment, it seeks to safeguard investors and maintain market integrity while also promoting innovation.
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