Below is a clearer explanation of Vietnam's current position and its evolving approach to cryptocurrencies:
---
🇻🇳 Current legal status
Not legal tender, but trading is allowed - The State Bank of Vietnam prohibits cryptocurrencies (Bitcoin, Ethereum, etc.) as legal payment methods and imposes fines ranging from 150 to 200 million VND on violators. However, there is no ban on owning or trading cryptocurrencies as assets.
Gray legal area - Despite being banned as a currency, there is currently no official regulation defining the ownership of cryptocurrencies, their transactions, taxes, or licensing of trading platforms.
---
📈 Adoption and risks
High adoption - Vietnam is ranked among the top five countries globally in cryptocurrency adoption, with approximately 17 million holders and more than 100 billion USD in cryptocurrency flows between 2021 and 2023.
Risks of fraud and illicit use - represent a significant portion of incoming flows (billion dollars), highlighting the risks of money laundering, fraud, and terrorism financing.
--
⚖️ Regulatory developments in 2025
March 2025 directive - Prime Minister Pham Minh Chinh instructed the Ministry of Finance and the Central Bank to develop a comprehensive legal framework for cryptocurrencies/digital assets by mid-March or by the second quarter of 2025.
Regulatory sandbox proposals - Proposals include the establishment of a regulatory sandbox for experimental cryptocurrency exchanges, as part of broader plans for a fintech ecosystem targeting a launch in mid-2026.
Digital technology industry law - The digital technology bill includes definitions for "digital assets" and anticipates further regulation of cryptocurrencies through this path.
--
✅ What's coming
1. Official legal status of cryptocurrency and digital assets.
2. Exchange regulation - Licensing, know your customer/anti-money laundering, transparency, and penalties for violations.
3. Regulatory sandbox experiments - Testing cryptocurrency platforms in controlled environments.
4. Tax rules - A personal income tax is likely to be imposed on cryptocurrency gains (according to expert discussions).
5. Investor protection - Aimed at preventing fraud, scams, and illicit financial flows.