The Race for Crypto Licenses in Vietnam: Potential Ban on Foreign Platforms

Vietnam, a Southeast Asian nation with a rapidly growing digital economy, is now preparing to implement a major regulatory shift in the cryptocurrency sector. The government in Hanoi plans to ban foreign crypto trading platforms, while numerous domestic financial firms have joined the race to secure licenses for local crypto exchanges. This move is viewed as part of a broader strategy to regulate the country’s digital financial market and curb capital outflow.

Vietnam’s Rapidly Growing Crypto Economy

Over the past few years, Vietnam has emerged as one of the most active nations globally in terms of crypto adoption. It is estimated that the total value of crypto transactions within the country exceeded $200 billion in the 12 months leading up to June 2025.

However, despite this significant level of activity, the country lacked an official domestic crypto exchange for a considerable period. Most Vietnamese investors continued to utilize foreign platforms such as Binance and OKX.

Consequently, the government is now taking steps to bring this sector under a formal regulatory framework and to mitigate the risks associated with digital assets.

The Government’s New Regulatory Framework

The Government of Vietnam has decided to launch a pilot program for the crypto asset market in 2025, under which domestically licensed crypto exchanges will be established.

Under this framework:

• Companies will be required to obtain a license to operate crypto trading platforms.
• The minimum capital requirement has been set at approximately 10 trillion Vietnamese Dong (roughly $380–400 million).
• At least 65% of the capital must be sourced from institutional investors.
• The limit on foreign ownership has been capped at 49%.

The Ministry of Finance and the State Securities Commission (SSC) will oversee this process. The license application procedure involves several stages, and a decision is expected to be reached within approximately 30 days.

Potential Ban on Foreign Crypto Platforms

Alongside the new regulations, the government is preparing to take another major step in reducing dependence on foreign crypto exchanges.

According to the draft regulations, Vietnamese citizens could be barred from trading on foreign platforms in the future. The objectives of this move are:

• To prevent capital outflow from the country
• To boost tax collection
• To ensure investor protection
• To strengthen the digital economy domestically

Experts believe that this policy will not only boost local companies but also grant the government greater control over the market.

Increased Competition Among Companies for Licenses

The government’s new policy has sparked fresh competition within Vietnam’s banking and financial sectors. Several companies are already preparing to apply for licenses.

Among the entities whose names have surfaced during this initial phase are:

• Entities affiliated with Techcombank
• VPBank
• LPBank
• VIX Securities
• Sun Group

Some of these companies have even officially confirmed their intention to apply for a license.

Additionally, numerous other banks and securities firms are forging technical partnerships to develop blockchain-based financial services, a move that could pave the way for a comprehensive digital asset ecosystem in the future.

Potential Impact on Investors and the Market

Analysts believe that restrictions on foreign platforms and the establishment of domestic exchanges could bring about significant changes in Vietnam’s crypto market.

Potential Impacts:

1. Growth of Local Exchanges: New opportunities will open up for digital financial companies within the country.
2. Improved Regulation and Transparency: Investors may benefit from enhanced protection.
3. Increase in Tax Revenue: The government will be able to collect taxes from digital transactions.
4. Shifts in Investment Behavior: There may be a growing shift from foreign platforms toward domestic ones.

However, some experts believe that overly stringent regulations could also stifle innovation.

Conclusion

This move by Vietnam demonstrates that governments worldwide are shifting toward regulating and institutionalizing the crypto market, rather than imposing a complete ban on it.

Through potential restrictions on foreign platforms and the implementation of a licensing framework for domestic exchanges, Vietnam aims to establish a model that strikes a balance between innovation and regulation. If this experiment proves successful, it could serve as a significant precedent for other emerging economies as well.