Vietnam is transitioning from a passive stance on cryptocurrency to a more structured and experimental approach. A regulatory sandbox is set to launch by mid-2026, laying the groundwork for formal digital asset laws. Early movers in the space could secure a competitive edge as the country builds a regulated crypto market.
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1. Growing Market, Unclear Rules
Vietnam ranks among the world’s top crypto adopters, with over 21% of adults engaged and $100B in annual crypto inflows. Despite this, the government prohibits crypto as a payment method, and lacks a licensing framework for exchanges or custodians, creating a legal gray area.
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2. Fragmented Oversight
State Bank of Vietnam (SBV): Conservative stance, banning crypto payments and exploring a state-backed CBDC.
Ministry of Finance: Leading the push for a crypto sandbox and regulation with global players like Bybit.
State Securities Commission: Focused on defining tokenized assets and preventing unauthorized securities issuance.
Ministry of Justice: Aims to classify digital assets under civil law but faces legal framework delays.
Ministry of Public Security: Targeting crypto-related crime with stricter KYC and transaction monitoring.
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3. Key Milestones in Regulation
2017: Crypto banned as legal tender.
2021: Ministry of Finance forms a crypto task force.
2023: FATF places Vietnam on gray list, prompting stricter AML action.
2024: National Blockchain Strategy launched to formalize blockchain use.
2025: Regulatory framework development begins, sandbox pilot to launch in 2026.
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4. Sandbox Era Begins
The upcoming sandbox, guided by the Ministry of Finance, allows regulated experimentation in trading, AML/KYC systems, and stablecoins. It offers a chance for industry players to collaborate, test models, and help shape long-term policy.
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5. Outlook
Vietnam’s crypto policy is evolving toward controlled innovation. Companies that engage now—prior to full regulation—can help define standards and gain early market advantage. Success in Vietnam will depend more on compliance and adaptability than on technology alone.
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