Vietnam is set to impose restrictions on its citizens' use of overseas cryptocurrency trading platforms, prompting a race among local companies to establish the country's first licensed digital asset exchanges. This move targets one of the world's most active crypto markets.
A government resolution issued in February outlined plans to launch a pilot program for local digital asset exchanges as early as this month. This initiative is part of broader efforts to strengthen oversight of cryptocurrency transactions and capital flows.
According to a Ministry of Finance document dated March 12, five companies have passed preliminary eligibility screening. These include affiliates of three Vietnamese private banks—Techcombank, VPBank, and LPBank—along with securities firm VIX Securities and Sun Group, one of Vietnam's largest private conglomerates.
Sun Group and VPBank confirmed they have submitted license applications, while the other three companies declined to comment. A spokesperson for the Ministry of Finance stated that authorities are processing the matter but would not comment on specific applicants.
Vietnam has emerged as a major global cryptocurrency hub, ranking fourth on blockchain data firm Chainalysis's Global Crypto Adoption Index for the year ending last June. The index estimated transaction volumes involving Vietnamese traders exceeded $200 billion during that period.
Growing regional adoption of cryptocurrencies and stablecoins has heightened authorities' concerns about uncontrolled capital outflows. The finance ministry is drafting new regulations that would prohibit Vietnamese citizens from trading on overseas crypto platforms.
Vietnam maintains strict controls on cross-border capital transfers. With a small and underdeveloped corporate bond market and a stock exchange still classified as a frontier market, many domestic savers invest in gold or real estate. Gold prices in Vietnam trade approximately 10% above international benchmarks, while the property market is prone to speculation, highlighting the limited investment options available to households.
Although Vietnam does not explicitly ban cryptocurrency ownership, digital assets are not recognized as legal tender or legitimate payment methods. Consequently, market participants indicate that most Vietnamese traders currently use overseas centralized exchanges such as Binance, OKX, and Bybit.
Phan Duc Trung, Chairman of the Vietnam Blockchain and Digital Asset Association, stated that successful domestic exchanges could help retain trading fees within the country and support the development of Vietnam's digital financial services sector. "This not only helps increase state budget revenue but also promotes the development of the domestic digital economy," he said. However, he cautioned that the legal framework remains incomplete, particularly in areas such as regulation, taxation, and risk management.