The Ministry of Finance announced a draft amendment to the Decree on sanctions in the securities sector, introducing new regulations on cryptocurrency assets, with fines of up to 200 million VND for investors who do not legally store them. Could this be a turning point for crypto management in Vietnam? Let's analyze in detail.
New Regulations: Heavy Fines for Cryptocurrency Assets
For the first time, the Ministry of Finance has added administrative sanctions for the cryptocurrency market – a type of digital asset that uses encryption technology for verification during the creation, issuance, storage, and transfer processes. Since there have been no previous regulations, this is seen as necessary, referencing the stock market. Investors who do not open accounts and transfer cryptocurrency assets to storage, trading at licensed organizations will be fined from 100 to 200 million VND.
Organizations providing cryptocurrency asset services that violate regulations, such as failing to verify investor identity, misleading advertising, or failing to separate customer asset management from proprietary trading, will be fined from 300 million to 2 billion VND, along with the risk of suspension for 3-5 months.
Market Manipulation: 5 Prohibited Acts
The draft lists 5 acts of market manipulation in cryptocurrency assets, including:
Using one or more accounts to continuously trade, creating false supply and demand.
Colluding to trade without actual transfers, or only rotating within an internal group.
Colluding, enticing others to place continuous orders.
Making direct/indirect comments in the media to influence price and supply-demand.
Spreading rumors or false information to create false supply and demand.
The fine for market manipulation ranges from 1.5 to 2 billion VND, aimed at preventing activities that cause market instability.
Context: Pilot Management of Cryptocurrency Assets
By the end of March 2025, the Ministry of Finance will present a draft resolution for a pilot program on the issuance and trading of cryptocurrencies and cryptocurrency assets, proposing coordination with the Ministry of Public Security and the State Bank to supervise exchanges. Representatives from the Ministry stated that cryptocurrency assets are developing rapidly, complex, and pose risks for investors and the financial market. The pilot phase with a limited scale will help regulatory agencies control and develop appropriate policies.
According to the Vietnam Blockchain Association, by the end of 2024, Vietnam will have about 17 million owners of cryptocurrency assets, ranking in the top 7 globally. In 2024, cryptocurrency inflows into Vietnam will reach 105 billion USD, down from 120 billion USD in 2023. Currently, there are about 20 exchanges operating in Vietnam.
Impact on the Crypto Market
This event brings many signals:
Increasing regulations: Crypto fund inflows reached 3.4 billion USD last week, but the new regulations could reduce the free activity of investors.
Promoting transparency: Heavy fines for manipulation and requirements for legal storage may reduce risks, with a forecast of accumulating 330 billion USD into Bitcoin by 2029.
Future Prospects
If the draft is approved in the next 1-2 years, Vietnam's crypto market may shift to a tighter management phase, reducing risks but also limiting flexibility. With 17 million owners, legalization could attract more organizations, but small exchanges may be eliminated. Cryptocurrency prices could fluctuate if investors panic before the regulations.
Conclusion: Will Vietnam's Crypto Transition and Thrive?
The Ministry of Finance proposed fines of 100-200 million VND for investors who do not legally store cryptocurrency assets, while imposing fines of 1.5-2 billion VND for market manipulation. With 17 million owners and 105 billion USD in cash flow in 2024, the new regulations promise transparency but also put pressure on the community. Investors should closely monitor to comply and seize opportunities.
Risk warning: Investing in crypto carries high risks due to price volatility and legal changes. Please consider carefully before participating.
