Pham Duy Khuong, managing partner of ASL Law

Vietnam’s emerging legal framework for cryptoasset exchanges reflects a gradual and controlled regulatory approach. Under current Vietnamese law, cryptoassets are not recognised as legal tender, and their legal classification as property or financial instruments remains subject to interpretation under existing legislation, including the Civil Code and relevant banking regulations.

However, Resolution No.05/2025/NQ-CP demonstrates a clear policy shift towards regulated experimentation. By requiring detailed application review and physical infrastructure inspection before granting approval, the Ministry of Finance (MoF) aims to ensure that only sufficiently qualified organisations are allowed to participate in the pilot phase.

This approach allows regulators to monitor operational performance, assess risks, and develop supervisory mechanisms before introducing a formal licensing regime. From a legal perspective, the pilot framework signals that Vietnam is moving towards structured regulation of cryptoasset exchanges rather than maintaining regulatory uncertainty.

While detailed regulatory requirements have not yet been fully codified, participation in the pilot is expected to involve several core conditions aligned with international regulatory practices. These are likely to include minimum financial capacity, transparent corporate governance, and robust internal control systems to ensure operational stability.

In addition, compliance with anti-money laundering and counter-terrorism financing obligations under Vietnamese law is expected to be a central requirement, including customer identification procedures, transaction monitoring, and reporting obligations. Technological readiness and cybersecurity infrastructure will also likely play a critical role, given the nature of crypto asset trading platforms.

Investor protection is anticipated to be a key regulatory priority, with potential requirements relating to risk disclosure, operational transparency, and dispute handling mechanisms.

From a policy perspective, Vietnam’s pilot framework signals a cautiously supportive regulatory stance towards cryptoasset exchanges. The pilot framework reflects Vietnam’s prudent approach in ensuring financial stability and regulatory control in the development of digital asset markets. The government appears to recognise the importance of digital assets in the global financial system, while maintaining a strong focus on risk control and market stability.

Allowing pilot exchanges helps bring crypto-related activities into a regulated environment, reducing illegal transactions and improving transparency. This balanced approach reflects Vietnam’s broader digital economy strategy, which seeks to encourage financial innovation while ensuring regulatory discipline and investor protection. The involvement of major corporate and financial groups further reinforces the government’s intention to build a stable and credible digital asset market.

In comparison with regional and global regulatory frameworks, Vietnam’s approach is still in its early stages but shows clear signs of convergence with international practices. Many financial centres in Asia have adopted licensing regimes that emphasise compliance, transparency, and investor protection, often starting with pilot or sandbox mechanisms before full implementation.

Vietnam’s requirement for coordination among the MoF, the Ministry of Public Security, and the State Bank of Vietnam reflects a multi-agency supervisory model similar to international regulatory practices. While the legal framework is not yet fully developed, the structured pilot programme and careful selection of participants demonstrate a clear movement towards internationally aligned standards.

This approach is broadly consistent with regulatory models adopted in jurisdictions such as Singapore and Hong Kong, where licensing regimes for cryptoasset service providers emphasise prudential supervision, anti-money laundering compliance, and investor protection. Vietnam’s pilot mechanism similarly reflects a sandbox-style approach, allowing regulators to test supervisory tools before formalising a comprehensive legal framework.

Despite these positive developments, several obstacles remain. A key regulatory gap lies in the absence of a clear legal definition of cryptoassets and their classification within Vietnam’s legal system. This legal ambiguity is further compounded by the absence of a comprehensive digital asset law, creating uncertainty for both domestic and foreign investors.

This ambiguity may also affect areas such as taxation, ownership rights, and dispute resolution. Addressing these foundational legal issues will be critical to ensuring long-term regulatory clarity and market development. Regulatory coordination and cross-border supervision may also present difficulties, particularly in areas such as cybersecurity, financial monitoring, and capital control.

In addition, the rapid capital increases announced by some pilot participants highlight the need for strict financial oversight to ensure transparency and sustainability. The pilot phase will therefore play a critical role in identifying regulatory gaps and refining the legal framework before broader market expansion.

To pull in foreign crypto exchange operators after the pilot phase, Vietnam will need to further develop a transparent and predictable licensing framework. Clear legal definitions of cryptoassets, standardised operational requirements, and streamlined licensing procedures will be essential to build investor confidence.

Regulatory consistency and alignment with international standards, particularly those promoted by the Financial Action Task Force, will also be essential to enhance Vietnam’s credibility and competitiveness in the global digital asset market.

Strengthening investor protection, aligning anti-money laundering regulations with international standards, and maintaining regulatory consistency will further strengthen market confidence and support Vietnam’s integration into the global digital asset ecosystem. Encouraging partnerships between foreign crypto exchanges and domestic financial institutions may also help accelerate market development by combining international expertise with local regulatory understanding.

Overall, Vietnam’s pilot cryptoasset exchange initiative represents a significant milestone in the development of a regulated digital asset market. With continued legal and international alignment, Vietnam is well-positioned to attract qualified foreign investors, provided that the post-pilot regulatory framework ensures legal clarity and alignment with international best practices.