Vietnam has taken an important step in cryptocurrency regulation by launching a pilot project that restricts operations to registered local companies and requires strict compliance.
New Market Regulation
According to a resolution published by the government, all transactions involving digital assets must be conducted in Vietnamese dong. Only Vietnamese companies may issue cryptocurrency, with offerings directed toward foreign investors. Any company wishing to launch an exchange must have a minimum capital of 10 trillion dong ($379 million), with at least 65% of the capital coming from institutional investors. Foreign ownership in any licensed trading platform is capped at 49%.
Investor Opportunities
Vietnamese citizens already holding cryptocurrency and foreign investors will be allowed to open accounts under the pilot scheme. Once the first licenses are granted, investors will have a six-month grace period to transition to authorized platforms. After that deadline, trading on unlicensed exchanges will be outlawed, though penalties for violations have not yet been detailed.
International Partnership Expansion
Military Bank recently signed an agreement with South Korean firm Dunamu, operator of Upbit, to develop a local exchange. Under this arrangement, Upbit will share its expertise and technology to support Vietnam's market entry. Despite the new framework, Bitcoin and other cryptocurrencies will remain outside the legal status of legal tender.
In conclusion, Vietnam is demonstrating its readiness to develop the cryptocurrency market by implementing new regulations and allowing international partnerships, which may attract further investment into the country.
