Once operating largely outside the scope of formal regulation, the country’s crypto asset market is now entering a defining stage, marked by the introduction of its first legal regulations and the growing involvement of financial institutions.

Building a legal framework at pace

Speaking at the conference on crypto assets and the future of digital financial markets, recently organised by the State Securities Commission of Viet Nam, To Tran Hoa, Deputy Head of the Standing Board of the Crypto Asset Trading Market Management Authority, outlined progress in developing the regulatory framework.

According to him, since the Government issued Resolution No. 05 on piloting the crypto asset market, Viet Nam has established an initial legal foundation within a relatively short period.

Relevant legislation, including the Law on the Digital Technology Industry, the Investment Law, and regulatory guidance on accounting, auditing and taxation for market participants, has been put in place.

Market development policies are guided by four key objectives: establishing a basic legal framework for the market, attracting foreign investment to support the digital economy, bringing crypto assets within anti-money laundering and counter-terrorism financing mechanisms, and meeting international standards.

Strict licensing requirements have been proposed for companies seeking to operate crypto asset exchanges. Applicants must have a minimum charter capital of 10 trillion VND (380.5 million USD), with the majority of capital contributed by organisations, including qualified financial institutions or technology firms. Foreign ownership is capped at 49%.

Regulators are prioritising the development of a transparent and accountable market. The rights and obligations of virtual asset service providers (VASPs), issuers and regulatory authorities are being clearly defined.

To Tran Hoa added that during the market’s initial phase, investors will still be allowed to store assets in personal wallets rather than transferring them entirely to domestic VASPs. However, all transactions must be conducted through licensed VASPs operating in Viet Nam.

Crypto asset transactions are expected to be settled in Vietnamese dong. In the early stage, foreign investors and domestic investors who already hold crypto assets will be permitted to trade, while new account openings for domestic investors will not yet be allowed.

Over the longer term, regulators plan to refine the legal framework further and explore additional products, including margin lending, crypto-backed lending and derivatives.

Alongside its growth potential, the crypto asset market presents significant regulatory challenges. According to Lieutenant Colonel Le Thi The Hoang, Deputy Head of Division 2 under the Ministry of Public Security’s Department for Investigation of Corruption, Economic and Smuggling Crimes (C03), authorities have identified four major categories of crime associated with crypto assets.

The most common involve fraud and asset misappropriation through pyramid schemes, fake investment projects and fraudulent exchanges. Other threats include theft of crypto wallets via fake websites, applications and reward programmes. Additional risks include money laundering and tax evasion through the movement of assets across multiple overseas wallets, as well as corruption and misconduct in regulatory activities.

Training and knowledge dissemination

Viet Nam has an opportunity to learn from both the successes and failures of more mature crypto markets. Phan Duc Trung, Chairman of the Viet Nam Blockchain and Digital Assets Association (VBA), believes that the key challenge in developing and operating the country’s pilot crypto market lies in the quality of human resources.

He noted that without professionals capable of risk management, regulatory compliance and system operations, the market could face substantial operational risks. Human resource development therefore needs to progress alongside legal reforms and technological advancement.

To prepare for the next stage of growth, the VBA has launched a range of training programmes on blockchain, artificial intelligence and crypto assets for regulators, financial institutions and investors.

Meanwhile, Nghiem Minh Hoang, Chief Strategy Officer of 1Matrix, said blockchain technology is creating opportunities to digitise traditional assets such as bonds, real estate and gold. The tokenisation of real-world assets (RWA) is widely viewed as one of the blockchain sector’s most significant growth drivers. Citing projections from the consulting firm Boston Consulting Group, he noted that the global RWA market could reach 46.2 trillion USD by 2035.

According to Hoang, Viet Nam is well positioned to benefit from this trend as technological capabilities, policy support and market demand increasingly converge, creating favourable conditions for the development of blockchain and digital assets.

After years of operating outside a formal legal framework, Viet Nam’s crypto asset market is now entering a new phase characterised by clearer rules and regulatory oversight. Considerable challenges remain, ranging from risk management and investor protection to the development of a highly skilled workforce. However, as regulations continue to mature and responsibilities become more clearly defined, the foundations for a transparent and sustainable digital asset market are gradually taking shape.