Vietnam Launches Ambitious Five-Year Pilot Program for Cryptocurrency Market

KEY FACTS: Vietnam has launched a five-year pilot program to regulate its booming cryptocurrency market, following the National Assembly’s approval of the Law on Digital Technology Industry, set to take effect in January 2026. The initiative imposes strict controls, requiring all crypto transactions to be conducted in Vietnamese dong and limiting issuers to Vietnamese enterprises with real-world asset backing, excluding securities or fiat currencies. Crypto asset service providers (CASPs) must have a minimum capital of 10 trillion dong ($379 million), contributed by at least two regulated entities, with stringent requirements for leadership experience and technical staff qualifications. Aimed at ensuring safety, transparency, and investor protection, the program positions Vietnam to balance its high crypto adoption with robust oversight, potentially setting a model for emerging markets. ___  Source: The Government Electronic Newspaper of Vietnam ___ # Vietnam Launches Ambitious Five-Year Pilot Program for Cryptocurrency Market Vietnam has unveiled plans for a comprehensive five-year pilot program to regulate and foster the cryptocurrency market. The initiative, announced as part of the country's push to become a leading digital technology hub, introduces stringent controls aimed at ensuring safety, transparency, and investor protection. With Vietnam already ranking among the world's top nations for cryptocurrency adoption, this program is significant in balancing innovation with regulatory oversight. The pilot program, detailed in a recent report from the Government Electronic Newspaper of Vietnam, comes on the heels of the National Assembly's approval of the Law on Digital Technology Industry in June. This landmark legislation, which is slated to take effect in January 2026, will finally grant legal recognition to crypto assets, addressing a long-standing regulatory vacuum that has allowed the sector to flourish informally. For years, Vietnam's tech-savvy population and entrepreneurial spirit have driven widespread crypto use, from everyday remittances to speculative investments. However, without clear rules, the market has been vulnerable to risks like fraud, money laundering, and market volatility. The report stated thus: > "This pilot implementation of the crypto asset market is carried out on the principles of caution, control, a roadmap suitable to practice, safety, transparency, efficiency, and protection of the rights and legitimate interests of organizations and individuals participating in the crypto asset market," At the core of the program are rigorous requirements designed to legitimize and stabilize crypto operations. All transactions involving the issuance, trading, and payments of crypto assets must be conducted exclusively in Vietnamese dong, the national currency. This mandate is intended to safeguard the local economy, prevent capital flight, and integrate digital assets more seamlessly into Vietnam's financial system. The authorities aim to enhance traceability and reduce the influence of volatile foreign currencies or unbacked tokens by tying crypto activities to the dong. Issuers of crypto assets will be limited to Vietnamese enterprises, specifically those registered as limited liability companies or joint stock companies in accordance with the Law on Enterprises. A key stipulation is that these assets must be backed by tangible real-world assets, explicitly excluding securities or fiat currencies. This asset-backing requirement is meant to mitigate risks associated with purely speculative tokens and ensure that crypto offerings have intrinsic value tied to physical or verifiable holdings, such as commodities, real estate, or other non-financial assets. Foreign investors, while welcome to participate, will only be able to engage through licensed crypto asset service providers (CASPs). These providers will serve as gatekeepers, facilitating offerings and ensuring compliance with international standards. The Ministry of Finance will oversee the licensing process, which promises to be highly selective to maintain market integrity. The bar for establishing a CASP is set exceptionally high, reflecting Vietnam's determination to attract only reputable players. Applicants must demonstrate a minimum capital base of 10 trillion Vietnamese dong—equivalent to approximately $379 million. This substantial threshold is not to be met by a single entity but must be met by at least two companies from regulated sectors, including commercial banks, securities firms, fund management companies, insurance providers, or technology enterprises. This collaborative funding model is designed to foster partnerships between traditional finance and innovative tech firms, potentially spurring synergies in Vietnam's evolving digital landscape. Further scrutiny applies to the financial health and track record of these contributors. Shareholders and capital providers must exhibit profitable operations for at least two consecutive years leading up to the license application. Leadership qualifications are equally stringent: Chief executive officers (CEOs) are required to have a minimum of two years' experience in fields such as finance, securities, banking, insurance, or fund management. Chief technology officers (CTOs), on the other hand, must possess at least five years of relevant expertise to handle the technical complexities of blockchain and digital asset platforms. Human resources form another critical pillar of the regulations. License seekers must employ at least 10 personnel in their technology department, all of whom need formal education and qualifications in relevant fields like computer science, cybersecurity, or blockchain development. These measures are intended to build a robust infrastructure capable of withstanding cyber threats and operational challenges, which have plagued crypto markets globally. Vietnam's crypto journey has been marked by rapid growth and regulatory evolution. According to global indices, the country consistently ranks in the top 10 for crypto adoption rates, with millions of citizens using digital wallets for everything from peer-to-peer transfers to e-commerce. This enthusiasm is fueled by a young, digitally native population and the remittances from overseas Vietnamese workers, who often turn to crypto for faster, cheaper cross-border payments. However, past incidents of scams and exchange hacks have highlighted the need for oversight, prompting the government to accelerate its legal framework. The pilot program's five-year duration provides a testing ground for these rules, allowing regulators to refine policies based on real-world outcomes. It aligns with broader national strategies outlined in the Law on Digital Technology Industry, which envisions Vietnam as a Southeast Asian powerhouse in fintech, AI, and blockchain. By formalizing crypto's role, the government hopes to attract foreign investment, boost job creation in tech sectors, and position the country competitively against regional peers like Singapore and Thailand, which have already established mature crypto ecosystems. Experts anticipate that the program could catalyze institutional involvement. For instance, recent developments include Vietnam's state-run Military Commercial Joint Stock Bank partnering with South Korean crypto firm Dunamu to launch a regulated exchange. Such collaborations signal growing confidence among traditional institutions, potentially unlocking billions in investments. Looking ahead, the program's success could redefine Vietnam's economic landscape. If executed well, it might not only protect consumers but also propel the nation toward its digital ambitions, creating a safer environment for crypto innovation. --- --- --- Information Sources: - [Press Release](https://baochinhphu.vn/trien-khai-thi-diem-thi-truong-tai-san-ma-hoa-tai-viet-nam-tu-9-9-2025-10225090917324155.htm) - [Cointelegraph](https://cointelegraph.com/news/vietnam-five-year-crypto-pilot-strict-controls) - [AInvest](https://www.ainvest.com/news/vietnam-5-year-digital-asset-pilot-gateway-southeast-asia-regulated-crypto-boom-2509/) ---  ___ _If you found the article interesting or helpful, please hit the upvote button and share for visibility to other hive friends to see. More importantly, drop a comment below. Thank you!_ ## This post was created via INLEO. What is INLEO? > [INLEO's](https://leofinance.io/) mission is to build a sustainable creator economy that is centered around digital ownership, tokenization, and communities. 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