When you hear the phrase “Vietnam crypto regulation,” you might picture a confusing maze of vague statements and half‑hearted bans. Vietnam's cryptocurrency legal status is actually a fast‑moving story that shifted from a gray‑area stance to a concrete framework in just a few months. This article walks you through the key milestones, the new rules that affect Bitcoin traders, and what you need to do to stay compliant.
Why the legal landscape mattered for Bitcoin traders
Before 2025, Bitcoin, Ethereum and other digital coins could be bought on peer‑to‑peer platforms, but there was no official guidance on whether those trades were legal, taxable, or enforceable. The uncertainty kept foreign exchanges hesitant, limited local startups, and left investors exposed to sudden crackdowns. The lack of clear ownership rights also meant courts struggled to settle disputes, and many users simply operated in the shadows.
The turning point: Law No.71/2025/QH15
On 14June2025 the National Assembly approved Law No.71/2025/QH15, titled the Digital Technology Industry Law. It officially recognises three categories of digital assets:
- Virtual assets used for exchange or investment.
- Crypto assets that rely on encryption for creation and transfer.
- Other digital assets such as NFTs and utility tokens.
The law grants these assets full civil protection - you can own, sell, inherit, or pledge them just like any other property. The legislation becomes effective on 1January2026, but an immediate pilot program started in September2025.
Resolution05/2025/NQ‑CP: The pilot program in practice
Signed by Deputy Prime Minister HoDucPhoc, Resolution05/2025/NQ‑CP launched a five‑year crypto market pilot. Its headline rules are:
- All crypto transactions must be settled in Vietnamese dong (VND).
- Only Vietnamese‑registered companies (LLCs or joint‑stock) may issue crypto assets.
- Crypto Asset Service Providers (CASPs) need a minimum capital of 10trillion VND.
- Crypto assets can be backed only by real assets - fiat‑backed stablecoins or tokenised securities are prohibited.
- Domestic investors must trade through licensed CASPs after a six‑month grace period.
The pilot also forces compliance with anti‑money‑laundering (AML), counter‑terrorist financing (CTF), and cybersecurity rules.
What the new rules mean for Bitcoin traders
If you’re buying Bitcoin in Hanoi or HoChiMinh City, here’s the practical impact:
- Domestic wallets must be linked to a licensed CASP. Your favorite P2P app can still match you with a buyer, but the final settlement must run through a CASP that holds the required capital.
- All trades are priced and settled in VND. You’ll see the VND price of Bitcoin on exchange screens, and any fiat‑to‑crypto conversion happens at the CASP level.
- Because fiat‑backed stablecoins are barred, you can’t use USDT or BUSD on Vietnamese platforms. Expect a shift toward direct VND‑BTC pairs.
- Tax treatment mirrors securities for now - capital gains are taxed at the same rate as stock profits (currently 0.1% transaction tax plus 10% personal income tax on net gains). The finance ministry promises a dedicated crypto tax decree later in 2026.
Licensing a Crypto Asset Service Provider (CASP)
For entrepreneurs looking to launch a crypto exchange or wallet service, the licensing checklist is strict:
| Requirement | Details |
|---|---|
| Legal form | LLC or joint‑stock company registered under the Law on Enterprises |
| Minimum capital | 10trillion VND (≈$430k) in cash or liquid assets |
| Ownership | Must be a Vietnamese‑registered entity; foreign investors can own shares but cannot be the controlling party |
| AML/CTF compliance | Adopt Know‑Your‑Customer (KYC) processes approved by the Ministry of Finance |
| Technology audit | Pass a security assessment by the State Bank of Vietnam’s cybersecurity unit |
Only after satisfying these steps does the Ministry of Finance issue a CASP licence, which remains valid for the five‑year pilot unless revoked for violations.
Key players and experts shaping the framework
Understanding who’s behind the rules helps you anticipate future tweaks:
- Dr.Tran Quy, President of the Vietnam Institute for Digital Economy Development - frequently quoted on the strategic importance of the pilot.
- The Ministry of Finance - the licensing authority, also responsible for tax policy.
- The State Bank of Vietnam - enforces AML/CTF and monitors cross‑border crypto flows.
Potential challenges and how to mitigate them
Even with clear rules, traders can slip up:
- Using unlicensed platforms. Authorities can impose administrative fines of up to 1% of turnover. Always verify the CASP licence number on the Ministry of Finance portal.
- Failing KYC checks - incomplete ID or address verification can lead to account freezes.
- Cross‑border transfers in non‑VND currencies - these are considered illegal under the pilot and may trigger penal liability.
Best practice: keep a record of your CASP licence, maintain up‑to‑date KYC documents, and transact only in VND‑denominated pairs.
What’s next after the pilot ends?
The five‑year test runs until September2030. During that window, the government will gather data on market liquidity, investor protection incidents, and compliance costs. Expected outcomes include:
- Possible reduction of the 10trillion VND capital floor if the market proves stable.
- Introduction of a separate crypto tax regime, likely distinguishing capital gains from trading income.
- Gradual allowance of tokenised securities, provided they meet strict disclosure standards.
For now, treat the pilot as a “sandbox” - a controlled space that lets innovators test products while the state watches closely.
Quick reference checklist for Bitcoin traders in Vietnam
- Verify the CASP licence (Ministry of Finance portal).
- Only trade VND‑BTC pairs; avoid stablecoins.
- Complete KYC - passport, national ID, and proof of address.
- Track all trades for tax reporting; keep receipts in VND.
- Stay updated on any amendments published in the official Gazette.
Frequently Asked Questions
Is Bitcoin illegal in Vietnam?
No. Bitcoin is not illegal, but all trading must go through a licensed Crypto Asset Service Provider and be settled in Vietnamese dong.
Can I use USDT or other stablecoins?
Stablecoins that are backed by fiat currencies are prohibited under the current pilot. Traders must use direct VND‑BTC or VND‑ETH pairs.
What is the minimum capital requirement for a CASP?
The law sets the threshold at 10trillion Vietnamese dong, roughly US$430,000, to ensure only well‑capitalised entities operate.
How are crypto gains taxed today?
Until a dedicated crypto tax decree is issued, gains are taxed like securities: a 0.1% transaction tax plus a 10% personal income tax on net profit.
Will the pilot affect foreign investors?
Foreign investors can participate, but only through Vietnamese‑licensed CASPs. Direct ownership of crypto assets without a local intermediary remains prohibited.
Comments
MARLIN RIVERA
The new capital requirement is a blatant cash grab that will choke out genuine innovators. Small teams will never scrape together 10 trillion VND, so expect a monopoly of state‑friendly behemoths. The AML checklist reads like a prison‑break manual for anyone not backed by a bank. VND‑only settlement is just another lever to keep the market under tight fiscal control. If you think this will boost confidence, you’re dead wrong.
July 2, 2025 AT 14:21
Debby Haime
Great news for traders who finally get legal clarity! Linking wallets to licensed CASPs will make everything smoother and safer. Think of it like finally getting a seatbelt on a fast‑moving bike – it’s a little restrictive but protects you. Keep your KYC docs up to date and you’ll be cruising without worries.
July 10, 2025 AT 07:03
emmanuel omari
Vietnam’s move is a textbook case of progressive regulation that many emerging markets should emulate. By categorising digital assets, the government provides certainty for both investors and local startups. The restriction on stablecoins is a logical step to prevent shadow banking. Moreover, the five‑year pilot gives regulators a sandbox to fine‑tune policies without stifling growth. It’s a win‑win for the national economy and the crypto community.
July 17, 2025 AT 23:44
Andy Cox
So you got your wallet linked now you can actually trade without the fear of a raid
July 25, 2025 AT 16:26
Courtney Winq-Microblading
In the quiet hum of Hanoi’s alleyways, a new kind of ledger whispers its truths. The law now treats crypto as a living entity, granting it the same civil protections as a family heirloom. This subtle shift reminds us that value isn’t confined to paper; it dances in code and consensus. As we trace the VND‑BTC pair, we also trace the pulse of a nation redefining ownership. Let’s not forget that every transaction is a story, a pact, a promise between strangers.
August 2, 2025 AT 09:08
katie littlewood
First and foremost, the licensing checklist reads like a marathon for any aspiring fintech founder, and that’s intentional. Second, the requirement of 10 trillion VND capital ensures that only entities with deep pockets can enter, which should weed out fly‑by‑night operations. Third, the mandate that all crypto must settle in VND eliminates the chaotic multi‑currency mess that plagued the P2P scene. Fourth, banning stablecoins pushes traders to engage directly with the underlying asset, which could reduce speculative bubbles. Fifth, the AML/CTF obligations, though strict, align Vietnam with global best practices and may attract institutional investors. Sixth, the five‑year pilot gives regulators a controlled environment to monitor market dynamics without stifling innovation. Seventh, the requirement that only Vietnamese‑registered companies can issue crypto assets protects national sovereignty over digital assets. Eighth, foreign investors can participate but only as minority shareholders, preserving local control while still inviting capital. Ninth, the tax regime, mirroring securities, simplifies reporting for traders familiar with stock markets. Tenth, the upcoming crypto‑specific tax decree signals the government’s commitment to evolving the framework. Eleventh, the emphasis on technology audits by the State Bank should boost confidence in platform security. Twelfth, the provision for inheritance and pledging of crypto assets opens new avenues for wealth planning. Thirteenth, the clear civil protection extends to dispute resolution, reducing courtroom ambiguities. Fourteenth, compliance with cybersecurity rules ensures resilience against hacking attempts. Fifteenth, the overall structure of this law reflects a balanced approach between regulation and market freedom, something many countries still struggle to achieve.
August 10, 2025 AT 01:50
Jenae Lawler
It would be facile to dismiss Vietnam’s regulatory initiative as mere bureaucratic overreach; however, a more discerning examination reveals a meticulously calibrated framework. The prohibition of fiat‑backed stablecoins, though seemingly draconian, safeguards the monetary system from unchecked tokenisation. Moreover, the insistence on VND settlement serves a dual purpose: it fortifies fiscal oversight while curbing the proliferation of unmonitored foreign exchange channels. One must also appreciate the statutory emphasis on civil protection, which elevates digital assets to the status of tangible property. In sum, the legislation epitomises a judicious equilibrium between innovation and sovereign prudence.
August 17, 2025 AT 18:31
Chad Fraser
Yo, the new rules might look heavy but they actually level the playing field. Get your KYC sorted, pick a legit CASP and you’re good to go. This is the hustle that’ll keep the market clean and grow big. Let’s ride this wave together!
August 25, 2025 AT 11:13
Jayne McCann
Regulation just turned crypto into a government‑run monopoly.
September 2, 2025 AT 03:55
Richard Herman
It’s encouraging to see Vietnam taking a balanced approach, giving clarity while still allowing space for innovation. The focus on VND settlement will help integrate crypto with the traditional economy. As long as the licensing process stays transparent, the market can thrive. Let’s keep the dialogue open and constructive.
September 9, 2025 AT 20:36
Parker Dixon
Nice breakdown! 👍 The VND‑only rule might feel limiting at first, but it actually protects traders from hidden fees. 🚀 Remember to double‑check the CASP licence number on the finance portal – it’s a quick way to avoid scams. 📄 Keeping your KYC documents current is a small hassle for big peace of mind. 🌟 Stay savvy and happy trading!
September 17, 2025 AT 13:18
Stefano Benny
The shift to a sandbox model aligns with global regulatory sandboxes, providing a controlled environment for fintech pilots. By mandating AML/CTF compliance, Vietnam mitigates illicit finance risks while fostering legitimate market activity. Excluding stablecoins simplifies the asset class hierarchy, though it may limit liquidity options initially. Overall, the policy architecture reflects a nuanced understanding of crypto economics.
September 25, 2025 AT 06:00
Bobby Ferew
Another layer of red tape? Just what we needed. The capital floor is absurdly high, basically a pay‑to‑play scheme. KYC overload will drown small traders in paperwork. It feels like the government is more scared of crypto than of actual fraud.
October 2, 2025 AT 22:42
celester Johnson
One could argue that conferring civil property rights to digital tokens is a philosophical milestone. Yet, without a robust enforcement mechanism, those rights remain fragile. The pilot, while promising, may become a bureaucratic showcase if not monitored diligently. In the end, the true test will be whether investors feel protected enough to stay.
October 10, 2025 AT 15:23
Prince Chaudhary
Friends, the new framework is a real opportunity for us to step up and build trustworthy services. By meeting the capital and compliance standards, you set a benchmark for the entire ecosystem. Let’s use this momentum to educate newcomers about responsible trading. Together we can turn this pilot into a success story.
October 18, 2025 AT 08:05