Vietnam has approved a five-year pilot program for a crypto asset trading market, potentially increasing interest and investment in the crypto space within the country.

Executive Summary

Vietnam has approved a five-year pilot program for a crypto asset trading market. This initiative, reported by Jinshi Data and 深潮TechFlow, aims to integrate digital assets into the formal financial system while adhering to global standards. The pilot program, overseen by the State Bank of Vietnam, seeks to foster innovation and attract investment within a controlled environment.

The Event in Detail

The pilot program is built upon the “Industrial and Digital Transformation Law,” providing a legal framework for digital assets, virtual assets, and tokenized assets. The Ministry of Finance has designated blockchain technology as core infrastructure for the International Financial Center (IFC). The IFC will serve as a regulatory sandbox, allowing the government to test and refine regulations governing digital assets. The Ministry of Finance is finalizing a draft scheme that could see more than one trading platform licensed to operate.

Market Implications

This move could position Vietnam as a regional leader in fintech and digital finance. The pilot program will assess the feasibility of crypto asset trading, including IT infrastructure, operational processes, and provider capability. The Vietnamese government aims to attract foreign and domestic investment to its growing fintech sector by creating a flexible regulatory sandbox. The initiative aligns with broader trends in Asia, where countries are experimenting with blockchain and digital currencies in controlled environments.

Expert Commentary

Pham Tien Dung, Deputy Governor of the State Bank of Vietnam, confirmed the approval, highlighting that the IFC will serve as a controlled environment for testing and regulating digital asset exchanges.

Deputy Minister of Finance Nguyen Duc Chi stated:

The draft sets out eligibility conditions for participating organizations, technical and operational requirements, and the financial and professional standards expected of service providers.

Broader Context

The Vietnamese government is taking a balanced approach, avoiding both unregulated chaos and outright prohibition. This strategy supports the development of a resilient financial system that can adapt to technological advancements. The program mirrors similar initiatives in other countries, such as Russia's Experimental Legal Regime (ELR), designed to test specific regulations within the cryptocurrency domain, including cross-border crypto deals and qualified investor trading. Hong Kong also has a Blockchain & Digital Asset Pilot Subsidy Scheme.

To ensure feasibility, the MoF has worked closely with legal and technology experts, hosting a series of workshops and stakeholder meetings to address legal, regulatory, and technological considerations. These efforts aim to mitigate risks associated with the crypto asset market, which remains largely unregulated in many jurisdictions. Once the detailed criteria are finalized, including IT infrastructure, operational processes, and provider capability, these will be publicly announced to ensure transparency and fairness in the selection of participating exchanges.