Vietnam is on the verge of implementing a significant transformational shift in its cryptocurrency regulatory landscape. Recently, the Ministry of Finance introduced a draft proposal that aims to impose a 0.1% tax on every crypto transaction made through licensed exchanges.
This initiative frames cryptocurrency transactions more comparably to traditional stock trades, rather than mere peer-to-peer exchanges. The implications of this proposal extend even to trades that do not yield a profit.
Structuring Cryptocurrency Transfers Under Tax Regulations
The outlined tax would be calculated on the entire transaction value, focusing on turnover rather than solely on profits. This stipulation is crucial, as it increases the overall expense of trading, particularly affecting retail investors who frequently engage in smaller transactions.
Reports indicate that the proposal is currently open for public comments, signifying a broader initiative aimed at tightening market regulations.
Exemptions and Corporate Tax Considerations
While trading and transfers may be free from VAT, businesses involved in cryptocurrency transactions will still face taxation. Local companies generating income from trading activities will be subject to a 20% corporate tax on their net profits, adjusted for deductible expenses.
This reality means that exchanges and investment firms in Vietnam must integrate tax accounting into their operational frameworks.
High Capital Requirements for Crypto Exchanges
In addition to tax policies, stringent licensing requirements are being introduced by regulators. Recent reports indicate that prospective exchanges may need a minimum capital of VND 10 trillion, which translates to approximately USD 380 to 408 million, depending on the current exchange rate. This capital threshold, coupled with rigorous governance and technological standards, could effectively exclude many small players from the market.
Establishing a Framework for a Regulated Market
This tax initiative is part of a larger strategy encompassing a five-year pilot program aimed at developing a regulated crypto market. This pilot, initiated in late 2025, seeks to implement clearer regulations around trading, custody, and issuance while linking these activities to the Vietnamese dong and maintaining anti-money laundering (AML) protocols. Users can expect that standard transactions may soon incur both enhanced costs and additional documentation requirements.
Anticipating Market Responses
Traders are expressing concern that the introduction of the 0.1% tax could lead to diminished liquidity and might cause short-term traders to migrate away from local platforms. Conversely, some believe that transparent regulations could appeal to institutional investors who prefer to avoid ambiguous legal situations.
Local media reports reveal a spectrum of reactions, including a blend of concern and cautious optimism, as the market grapples with the balance between increased compliance expenses and the potential benefits of established regulatory measures.
Featured image sourced from Pexels, chart provided by TradingView
