- Vietnam is drafting crypto regulations as millions trade without legal protection.
- A sandbox policy may allow regulated crypto trading under government supervision.
- Clear laws aim to balance innovation, investor protection, and economic growth.
Vietnam is gradually moving toward legalizing digital assets and cryptocurrencies. Millions of Vietnamese engage in crypto trading without legal protection. The government is preparing to introduce a standard, with PM Pham Minh Chinh directing the Ministry of Finance and the State Bank of Vietnam to propose rules. A proposal is expected by March, marking the first step toward regulatory oversight. This is part of Directive No.05, with the aim to achieve 8% economic growth in 2025.
The Ministry of Finance is currently participating with other agencies to formulate legal frameworks for digital assets. The Ministry of Planning and Investment has also recently opened a public consultation on developing a regional and international financial hub in Vietnam. One of these measures is a regulatory ‘sandbox‘ that allows controlled testing of crypto trading platforms and other fintech startups.
Sandbox Model for Testing
The sandbox model, if implemented, would establish a legal framework for digital asset transactions. The financial center is set to open on July 1, 2026, to provide a clear regulatory structure for cryptocurrency operations. However, Vietnam is in the process of drafting another Law on the Digital Technology Industry where digital assets will be recognized as a type of digital technology product. This law will place the Ministry of Finance in charge of supervising and licensing most aspects of the sector to ensure compliance and security.
Vietnam Leads in Crypto Adoption
Vietnam is among the world’s leading nations in cryptocurrency adoption, despite the lack of clear regulations. According to a 2024 Chainalysis report, the country is the fifth most interested in crypto globally, the third highest users of international trading platforms, and sixth in decentralized exchange turnover.
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As of now, about 17 million Vietnamese are digital asset holders, and the country’s market is more than $100 billion. Most activity takes place in an unregulated environment, thus increasing the risks of fraud and scams for investors.
Vietnam has been gradually moving toward regulatory clarity. In the process, policymakers aim to foster innovation while protecting investors. A sound legal environment could boost consumer confidence. The next few months will shape Vietnam’s regulatory stance on cryptocurrency.
