Vietnam’s Five-Year Crypto Pilot Takes Effect
Vietnam, considered among the most crypto-friendly countries in Asia, has launched a five-year crypto pilot program to regulate crypto issuance, trading, and payments.
This week, the resolution was signed by Deputy Prime Minister Ho Duc Phoc, introducing a framework aimed at governing crypto activity.
All cryptocurrency transactions must now be conducted in Vietnamese dong, and issuers must be Vietnamese enterprises established under Vietnam’s Law on Enterprises.
Vietnam Bans Fiat-Backed Stablecoins
One of the most significant rules is the ban on fiat-backed crypto assets.
The resolution allows issuance of crypto assets only if they are backed by “real underlying assets”, excluding securities or fiat currency.
This effectively blocks stablecoins such as Tether (USDT) and USD Coin (USDC), shielding Vietnam from risks tied to tokens pegged to the U.S. dollar.
Also Read : South Korea’s FSC Chief Nominee Calls Crypto ‘Valueless’ as Youth Adoption Soars
Strict Licensing and Capital Rules for CASPs
Crypto Asset Service Providers (CASPs) face stringent requirements:
- Minimum capital of 10 trillion dong (~$379M)
- At least two firms must contribute capital for operations in sectors like banking or securities
- Shareholders must demonstrate two consecutive years of profitability
Staffing requirements:
- CEOs must have 2 years of experience in finance, banking, insurance, or securities
- CTOs need 5 years of technical experience
- A minimum of 10 qualified personnel in the tech department per applicant
Only large, well-established enterprises are likely to meet these high standards.
A Cautious but Ambitious Approach
The pilot emphasizes caution, control, transparency, efficiency, and investor protection.
According to the Ministry of Finance of Vietnam, foreign investors can purchase crypto assets freely from licensed CASPs.
This initiative follows Vietnam’s Law on Digital Technology Industry, which provides legal recognition to digital assets and strengthens Hanoi’s position as a regional digital finance and technology hub.
Why Vietnam’s Crypto Pilot Matters
Vietnam’s approach is stricter than most Asian markets:
- Bans fiat-backed tokens
- Requires all transactions to be in Vietnamese dong to safeguard its national currency
The Vietnam crypto pilot could serve as a regulatory blueprint for other emerging markets that have adopted crypto, demonstrating a balanced approach to innovation and risk management.
