Vietnam is witnessing a significant surge in the number of individuals embracing digital assets, with approximately 17 million owners, according to recent statistics, placing the country seventh globally. Notably, in the 2023-2024 period alone, blockchain-related investments into the domestic market surpassed a remarkable 105 billion USD, a figure that only scratches the surface of its potential.
Impetus from Emerging Legal Framework
Following the enactment of the Law on Digital Technology Industry by the National Assembly, slated to come into force on January 1, 2026, various ministries and sectors are expediting the implementation of pilot programs for digital asset exchanges and the establishment of an International Financial Center. As part of this initiative, the Ministry of Finance is crafting a resolution to propose to the government, recommending the licensing of approximately five exchanges with international connectivity, enabling the trading of popular cryptocurrencies such as Bitcoin and Ethereum.
Experts view this development as a significant step forward, not only in legitimizing this novel investment avenue but also in boosting tax revenues, attracting foreign investment, and expanding funding opportunities for tech startups.
At a talk show titled “What Are the Opportunities for Digital Currency Exchanges?” organized by NLD Newspaper on August 21, Mr. Tran Xuan Tien, Secretary-General of the Ho Chi Minh City Blockchain Association (HBA), emphasized: “The allure of blockchain technology lies in its capacity to reduce operational costs, eliminate intermediaries, and, most importantly, bring transparency to transactions. However, the absence of a legal framework in Vietnam over the years has hindered market growth, and the aforementioned 105 billion USD figure merely scratches the surface.”
 Experts advise the formulation of a transparent legal framework, accompanied by stringent supervisory mechanisms, to safeguard investors in the digital currency market. Photo: TAN THANH |
Mr. Tien asserted that with proper regulatory tools, measuring the scale of this industry would become more accurate, simultaneously bolstering confidence among both retail and institutional investors. He cited the examples of Dubai and Singapore, which have swiftly established mechanisms for this market. By piloting five exchanges, Vietnam will enhance market transparency and be better positioned to unlock its true potential.
From a business perspective, Mr. Nguyen The Vinh, CEO of Ninety Eight (formerly Coin98), revealed that the number of Vietnamese holding crypto assets far surpasses the number of stock investors. The allure of these assets lies in the unique fusion of finance and technology. Blockchain technology offers distinct advantages, including low transaction costs, high liquidity, and global connectivity.
“If Vietnam navigates this path prudently, it can attract substantial foreign investment while fostering a financial-technological ecosystem that keeps pace with global trends, solidifying its standing on the international blockchain landscape,” Mr. Vinh remarked.
Transparency and Investor Protection
Experts unanimously agreed that for the sustainable development of the digital currency market, transparency and investor protection must take center stage.
Mr. Huynh Quoc Nam, Business Development Director at OKX Global, one of the world’s leading exchanges, suggested that operational transparency is paramount. Exchanges should ensure transparency in trading volume, liquidity, and asset backing mechanisms. He cited the example of a top-two global exchange that collapsed due to misusing client assets for other investments, leading to insolvency.
Mr. Nam emphasized the necessity of asset backing and additional insurance for investors. A dedicated cybersecurity team and stringent Know Your Customer (KYC) procedures are essential to verifying customer identities and mitigating money laundering and fraud risks.
Mr. Tran Xuan Tien proposed that Vietnam could emulate South Korea’s model, where trading accounts are directly linked to banks, ensuring transparent cash flow. Sharing this viewpoint, attorney Dao Tien Phong, Executive Director of Investpush Law Firm, stated: “Trust and reputation are pivotal in the exchange business. Thus, regulatory authorities should enforce stringent standards for licensed entities. They must possess the requisite experience, operational capabilities, and comply with technical and security criteria.”
Mr. Phong highlighted that globally, jurisdictions like Singapore, Hong Kong, and Dubai impose rigorous licensing requirements on Virtual Asset Service Providers (VASP), mandating asset custody, account backing, minimum capital requirements, and insurance. “Vietnam should strive for similar standards, coupled with the obligation for licensed exchanges to establish legal entities and a physical presence in Vietnam for streamlined management. The recently enacted Personal Data Protection Law will also play a pivotal role in safeguarding investor information in this evolving market,” he assessed.
The Executive Director of Investpush Law Firm also suggested that Vietnam should open its doors to reputable international exchanges to learn from their technological prowess and regulatory frameworks. Simultaneously, the development of domestic exchanges should be encouraged to manage data and protect investors. “While we need to move swiftly, a cautious approach through a sandbox mechanism is advisable,” he added.
Mr. Tran Xuan Tien underscored the element of time: “If we don’t establish digital currency exchanges within the next 1-2 years, Vietnam risks falling behind. However, rushing without caution could invite potential pitfalls. Thus, we should develop domestic exchanges to manage liquidity and data while allowing international exchanges to ensure competition and facilitate the absorption of expertise from models in Dubai or Singapore.”
From a technological standpoint, Mr. Nguyen The Vinh affirmed Vietnam’s capability to establish its own digital currency exchanges but suggested collaborations with major exchanges like Binance and OKX to leverage their infrastructure and expertise. He emphasized that swift execution is critical, as delaying would squander existing opportunities and resources.
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Expanding Service Offerings According to Mr. Huynh Quoc Nam, for digital asset exchanges to become integral components of an international financial center, Vietnam needs to keep pace with the dynamic evolution of global digital financial products. Beyond basic trading, exchanges must diversify into derivatives and margin trading, domains that have already gained traction worldwide but remain distinct from traditional domestic markets. Mr. Nam proposed that a sandbox approach would enable investors to experiment with these products in a controlled environment, mitigating potential risks. |
LE TINH
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