- Vietnam initiates a five-year regulated crypto market pilot.
- Ho Duc Phoc leads new blockchain strategy.
- Strict capital requirements and asset-backing rules apply.
Vietnam has initiated a five-year pilot for regulated crypto trading under Deputy Prime Minister Ho Duc Phoc’s leadership, aligning with the country’s National Blockchain Strategy.
This pilot aims to transition Vietnam from informal crypto adoption to regulated participation, impacting asset eligibility and compliance, closely observed by global market players.
Vietnam has commenced a regulated pilot program for the cryptocurrency market, spanning five years. Deputy Prime Minister Ho Duc Phoc leads this initiative, which forms part of the National Blockchain Strategy. Enterprises will require licensing from the Ministry of Finance.
The pilot program mandates Vietnamese companies to operate as LLCs or joint-stock firms. It limits foreign ownership to 49% and requires exchanges to have institutional capital comprising at least 65%. Vietnam’s crypto market currently exceeds $100 billion in total assets. “Vietnam’s crypto market already holds over $100 billion in digital assets,” as per Vietnam Investment Review.
The authorization of regulated exchanges necessitates a minimum capital requirement of 10 trillion VND, approximately $379 million. Only tokens backed by tangible assets, such as real estate and commodities, are eligible for trading, with all transactions conducted in Vietnamese dong.
This project transitions Vietnam towards formal regulatory compliance, moving away from a previously informal participation in crypto markets. Historical comparisons highlight similar initiatives in places like Singapore and Japan, which influenced local blockchain innovations and investments.
Analysts anticipate potential market and regulatory outcomes from this pilot. Future amendments in regulations might impact eligibility criteria for mainstream crypto tokens like BTC or ETH. A focus on asset-backed tokens aligns with national strategies for ensuring market stability.
“The pilot implementation of the crypto asset market is carried out on the principles of caution, control, a roadmap suitable to practice, safety, transparency, efficiency, and protection of the rights and legitimate interests of organizations and individuals participating in the crypto asset market,” said Deputy Prime Minister Ho Duc Phoc.
The establishment of a secure digital asset market could encourage further blockchain developments in Vietnam. The initiative sets a legal precedent for recognizing cryptocurrencies as property, adhering to AML and KYC protocols. Such regulatory frameworks could foster a controlled yet progressive crypto ecosystem.
