Cryptocurrency Assets in Vietnam: A Beginner’s Opportunity Like ‘Starting First Grade’

“Everything is still quite fragile”

Resolution 05/2025/NQ-CP on the pilot implementation of the cryptocurrency market in Vietnam came into effect on September 9, with a pilot period of 5 years. Mr. Phan Đức Trung, Chairman of the Vietnam Blockchain and Digital Asset Association (VBA), believes that if Vietnam follows the right direction, it could shorten the global development journey of 10 years to just 2-3 years.

“Our biggest concern right now is the issue of human resources. When the resolution was issued, the digital asset market in Vietnam was still largely spontaneous. Tens of millions of people are participating, most of whom have no prior experience or foundational understanding of this market. From the association’s perspective, we see significant risks in this field. Therefore, the biggest challenge at present is the capacity of personnel, not only within regulatory bodies but also among service providers, exchange operators, and training systems for market participants. Everything is still quite fragile,” Mr. Trung expressed.

In the initial phase, the resolution only allows the offering and issuance of cryptocurrencies to foreign investors, not domestic ones. This reflects the policy of attracting foreign capital but also poses a global competitiveness challenge. “Do our products have sufficient quality and transparency to attract international investors? Is the market scale and liquidity large enough for them to participate long-term?” Mr. Trung questioned regarding attracting international investors.

To perfect the operational framework and create a true market, Mr. Trung emphasizes the need to learn by doing and adjusting along the way. According to him, the opportunity is like a “first-grader stepping into class,” very new, but it is from this stage that a generation of mature personnel, businesses, and regulatory bodies will emerge.

According to statistics from various global organizations, over 90% of tokens issued between 2020 and 2022 have lost value or ceased operations, with only a very small number maintaining liquidity and market presence due to practical applications. With the pilot in Vietnam, cryptocurrencies must be issued based on underlying assets that are real assets, excluding securities and fiat currency.

The Chairman of VBA recommends that government bonds could be a reasonable starting point. Citing Thailand’s successful trial of tokenized government bonds, Mr. Trung believes that if Vietnam can achieve this, it will meet three goals: perfecting the legal framework, reducing issuance costs, and promoting financial technology innovation.

Mobilizing Vietnamese Intellect

Discussing human resources, Mr. Thuật Nguyễn, Co-founder and CEO of Kyros Ventures, is confident that Vietnam has a significant advantage in cybersecurity, with many skilled engineering teams, such as Verichains, which helped recover over $600 million stolen from Axie Infinity.

“Vietnam has many highly skilled anonymous experts ready to support projects. If we can effectively mobilize and connect this force, Vietnam could become a regional cybersecurity hub in the blockchain field,” Mr. Thuật stated. He also proposed establishing a legal framework for decentralized finance (DeFi). Many Vietnamese engineering teams are building globally renowned DeFi products but hesitate to develop them in Vietnam due to the lack of a supportive legal framework.

“Decentralized transactions operate 24/7 without opening or closing hours, entirely managed by smart contracts. To establish a mechanism for this type, Vietnam needs to collaborate with agencies like cybersecurity to handle risk scenarios, such as determining liability when smart contracts fail or decentralized exchanges are hacked,” he analyzed.

Regarding the listing mechanism for cryptocurrencies, Mr. Thuật believes Vietnam should grant choice to licensed exchanges, similar to models in developed countries. “Regulatory bodies should set criteria based on liquidity and community acceptance. Large-scale coins like Bitcoin, Ethereum, and Tether (USDT, USDC) should be listed first. Vietnam will certainly not list unverified new tokens,” Mr. Thuật said.

Mr. Tô Trần Hòa, Deputy Head of the Securities Market Development Department at the State Securities Commission, stated that Resolution 05 does not aim to hinder innovation in technology development but focuses on managing issuance and trading activities. The reason Vietnamese investors are not yet allowed to participate is that this new investment channel requires time for risk awareness and knowledge enhancement. However, Vietnamese individuals can still own cryptocurrencies through secondary markets.

Regarding the criteria, procedures, and conditions for licensing cryptocurrency service providers, the State Securities Commission is drafting related guidelines. The Ministry of Finance has also developed an implementation plan, including tasks related to the legal framework, tax policies, tax payment procedures, accounting regimes, and relevant regulations. Although no enterprises have officially submitted registration files, some have expressed interest and held initial technical discussions with regulatory bodies.