#VietnamCryptoPolicy Vietnam currently prohibits the use of cryptocurrencies like Bitcoin or Ethereum as a means of payment, with violators facing fines ranging from 150 to 200 million VND. However, trading and holding crypto as an asset remains legal. Despite the growing interest and adoption of digital assets in the country, there is still no comprehensive legal framework governing their use, leading to a regulatory grey area. The government has acknowledged this and is actively working on a legal sandbox and pilot programs aimed at creating a safer and more structured crypto environment.

In early 2025, the Vietnamese government approved the pilot operation of a domestic crypto exchange. Key cities like Ho Chi Minh City and Da Nang have been earmarked for sandbox trials, and a full legal framework is expected to be developed by March 2025 under Directive 05/CT-TTg. Alongside this, several legislative drafts are being prepared, including a law on digital technology and digital assets, which would create clearer definitions and regulatory pathways for cryptocurrencies and related services. The pilot period is likely to last through the end of 2027.

On the taxation front, experts have proposed a transaction-based tax model of about 0.1%, which could generate up to $800 million in revenue annually. There are also discussions around taxing capital gains and applying licensing fees for crypto exchanges, while possibly exempting crypto from VAT to prevent double taxation. These models are inspired by international practices, including those in the EU and Singapore.

Despite its proactive stance, Vietnam faces challenges in enforcement, especially around anonymous wallets, decentralized finance, and cross-border capital flow. There is also concern about fraud and scams in the space, with Vietnamese investors losing millions in unregulated schemes even as they collectively earned an estimated $1.18 billion from crypto trading in 2023.