Key Takeaways:
- Vietnam is planning to restrict its citizens from using crypto exchanges based in other countries.
- Companies in Vietnam, including banks, are in a hurry to launch their crypto exchange platforms.
- Vietnam is ranked #4 in crypto adoption worldwide, with a volume that surpasses $200B.
Vietnam is moving quickly to reform its crypto market. Authorities want to bring trading activity under local control while building a regulated ecosystem from within. The shift could redefine how millions of Vietnamese users access digital assets.
Vietnam Moves to Block Overseas Crypto Trading
The government in Vietnam is preparing rules that would stop citizens from trading on foreign crypto platforms. This includes major exchanges like Binance, OKX, and Bybit, which currently dominate the local market.
Officials are concerned about capital outflows and the lack of oversight tied to offshore platforms. The use of crypto and stablecoins has increased exponentially, and it is becoming increasingly challenging to monitor financial movements. Vietnam already has strict regulations in place regarding the flow of capital across borders. Now, it is being proposed that crypto trades be subject to such regulations.
Read More: Senate’s 84–6 Shock Vote Advances Housing Bill With Sweeping CBDC Ban to 2030
Race to Launch First Licensed Domestic Exchanges
At the same time, regulators are opening the door for local players. A pilot program is being prepared to launch Vietnam’s first licensed crypto exchanges, possibly as early as this month.
Five companies have passed an initial screening round. These include firms linked to Techcombank, VPBank, and LPBank, along with VIX Securities and Sun Group. Some applicants have confirmed their participation, while others remain silent.
What the Pilot Aims to Do
The program focuses on building regulated exchanges that:
- Operate within domestic legal frameworks
- Integrate with existing financial systems
- Improve transparency and compliance
Authorities want to ensure crypto trading happens inside a controlled environment rather than on external platforms.
A $200 Billion Market Driving Policy Shift
Vietnam’s crypto activity is massive. According to Chainalysis, the country ranked fourth in the global adoption index. Vietnamese users moved more than $200 billion in crypto over a 12-month period. Such an amount of transactions has raised some concerns among the relevant bodies. Otherwise, the financial system might lose control over such transactions.
Limited Investment Options Fuel Crypto Demand
The popularity of crypto in Vietnam is linked to the financial environment. There are limited financial instruments for investments. The Vietnamese stock exchange is still considered a frontier market. Corporate bonds are not well developed.
Moreover, the price of gold is higher in the country compared to the global market. There are also cases of speculative surges in the property market. That is why people are showing interest in crypto. Still, crypto assets are not considered legal means of payment in the country.
Ownership is allowed, but the relevant framework for this sector is incomplete. The industry believes that the fees paid in the exchange could stay in the country and contribute to the development of the digital economy. However, the relevant areas are still incomplete.
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Source: https://www.cryptoninjas.net/news/vietnam-to-ban-offshore-exchanges-launch-local-platforms/
