In recent developments, Vietnam is set to implement a government-backed initiative that will regulate the offering, issuance, and trading of cryptocurrency assets. This pilot program is scheduled to commence on September 9, 2025, and will span a period of five years.
This framework addresses critical areas concerning who can issue tokens, who can manage trading markets, and the modalities of participation for both international and local investors.
Deputy Prime Minister Ho Duc Phoc has officially sanctioned the resolution, which outlines the legal criteria necessary for the trading and issuance of crypto assets, as reported by the Government Electronic Newspaper of Vietnam earlier this week.
Stringent Requirements for Capital and Institutions
Organizations aiming to operate crypto trading venues will face rigorous capital and ownership standards. The new framework mandates a minimum charter capital of 10,000 billion Vietnamese Dong.
To ensure stability, at least 65% of this capital must be owned by organizations, with no less than 35% required to be held by a minimum of two institutional entities such as commercial banks, securities companies, or technology firms.
The regulation also restricts foreign ownership in licensed ventures to 49%, aiming to safeguard national interests. Moreover, the leadership structure must comply with strict experience criteria: General Directors must possess a minimum of two years in a relevant field, while Chief Technology Officers need five years of pertinent experience, as specified in the resolution.
Additionally, firms are mandated to hire at least 10 employees trained in cybersecurity and another 10 trained in securities practices. The IT infrastructure must adhere strictly to Level 4 information security standards before the platform becomes operative.
Backing and Accessibility for Investors
According to various reports, any tokens launched during this trial must be supported by legitimate underlying assets. Notably, securities and fiat currencies are prohibited from being classified as these underlying assets. Offering related services may target international investors, with trades managed by providers licensed through the Ministry of Finance.
It’s the responsibility of issuers to disseminate a prospectus and supporting documentation at least 15 days prior to any offerings. Participants are expected to ensure that all publicly available information is both accurate and timely.
Permitted Services and Risk Management
Licensed service providers will be empowered to establish trading platforms, offer asset custody services, manage issuance systems, and engage in self-trading activities under clear regulatory guidelines. A robust risk management framework is essential, which includes protocols for deposit handling, transaction security, and anti-money laundering (AML) measures to prevent funding for terrorism and other illicit activities.
Additionally, firms must implement internal monitoring mechanisms to oversee transactions and address any potential conflicts of interest, alongside robust processes for managing customer grievances and compensation, as delineated in the resolution.
Regulation and Consequences for Noncompliance
Local investors will have the ability to create accounts with licensed providers to manage their crypto assets effectively. However, starting six months post the licensure of the first crypto asset service provider, any domestic trading activities that circumvent licensed platforms will incur administrative penalties or even criminal charges, contingent on the seriousness of the infraction.
Featured image from Unsplash, chart from TradingView
