The Ministry of Finance of Vietnam has just announced a draft amendment to the Decrees on administrative violations in the securities sector, with content expanded to include the cryptocurrency market. This is the first time violations related to cryptocurrencies have been included in the administrative penalty framework.
One notable content is the proposal to impose fines ranging from 100 million to 200 million VND on individuals who do not open accounts and do not transfer the cryptocurrency they own for custody, trading on exchanges licensed by the Ministry of Finance. This measure aims to ensure transparency and safety in managing this new type of asset, which still carries many risks and lacks a clear legal framework.
In particular, the Ministry of Finance proposed very heavy fines, ranging from 1.5 billion to 2 billion VND, for acts of manipulating the cryptocurrency market, including: using multiple accounts to create fake supply and demand; colluding in transactions that do not actually transfer ownership; spreading misleading information in the media to direct the market. This is the first time the regulatory agency has detailed the acts considered as manipulating the cryptocurrency market.
In addition, organizations providing cryptocurrency services also face fines of 300 million to 2 billion VND if they violate regulations such as failing to verify investor identities, misleading advertising, or not separating customer assets from proprietary assets. For serious violations, these organizations may be suspended from operation for 3 to 5 months.
However, not all coins are listed on centralized exchanges; many tokens only exist on decentralized exchanges (DEX), where trading does not go through an intermediary. It is still unclear how the regulatory mechanism will apply to these assets, as well as whether tokens distributed for free through airdrops will be considered taxable income.
Another noteworthy point is that many users are currently self-custodying their cryptocurrency in personal wallets – which is considered the standard for security and ownership in the decentralized world. Requiring them to withdraw assets from their wallets to deposit on licensed exchanges not only increases risk but also contradicts the core spirit of blockchain: 'Not your key, not your coin.'
According to the Ministry of Finance, cryptocurrency is a type of digital asset that uses encryption technology or equivalent digital technology to validate the process of creation, issuance, storage, and transaction. In the context of this type of asset developing rapidly and posing many risks, tightening management and piloting within a limited scope, with close supervision, is necessary to protect investors and ensure financial stability.
At the end of March, the Ministry of Finance submitted a draft Resolution to the Government on piloting the issuance and trading of cryptocurrencies, proposing to coordinate with the Ministry of Public Security and the State Bank to manage exchanges operating under a trial mechanism.