Vietnam Launches Five-Year Crypto Pilot to Test Regulatory Framework

Vietnam has begun a landmark five-year pilot program to regulate cryptocurrency activities.

The framework outlines strict rules on issuance, trading, and foreign investment to ensure a balance between innovation and investor protection.

Vietnam has long ranked among the top countries for cryptocurrency adoption. Millions of citizens turn to digital assets for trading, savings, and cross-border payments. However, until now, the industry has largely operated in a legal gray zone.

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That changed this week when Deputy Prime Minister Ho Duc Phoc signed a resolution introducing a regulatory framework for cryptocurrencies. The resolution, reported by the Government Electronic Newspaper of Vietnam, takes immediate effect and establishes a five-year pilot program.

Officials say the trial will allow regulators to observe how the market functions under clear rules before deciding on permanent laws.

Transactions Restricted to Vietnamese Dong

As part of the newly approved framework, the government is tightening its grip on how cryptocurrencies are used within the country. A central provision requires that all crypto transactions be conducted exclusively in Vietnamese dong.

This applies to every stage of activity, from the initial issuance of tokens to trading and payment processing. Authorities believe this measure will strengthen oversight, reduce reliance on foreign currencies, and safeguard Vietnam’s monetary stability.

Issuers Limited to Domestic Enterprises

The resolution also sets strict conditions on who can issue crypto assets. Only companies established under Vietnamese law, either limited liability firms or joint stock companies, are eligible. 

This restriction effectively prevents foreign firms from issuing tokens directly in Vietnam. Instead, they will need local partnerships or licenses to participate in the market.

Ban on Fiat-Backed and Securities-Backed Tokens

Alongside these structural limits, the government has also clarified what types of assets may back digital tokens. One of the strongest provisions is the ban on crypto assets backed by fiat currencies or securities.

Authorities argue that such instruments could blur the lines between digital assets and traditional money or financial products, creating unnecessary risks.

Instead, tokens must be issued against real, tangible assets. These could include commodities, property, or other non-financial holdings. Officials believe this approach will reduce systemic risks while encouraging innovation tied to real-world value.

Access for Foreign Investors

In addition to regulating domestic issuers, the resolution also addresses how overseas participants can engage with the Vietnamese market. The government has opted for a cautious approach rather than a full-scale opening.

Foreign investors may only buy or hold Vietnamese crypto assets through licensed service providers. These intermediaries, known as Crypto Asset Service Providers (CASPs), must first receive authorization from the Ministry of Finance. 

By requiring this channel, authorities aim to keep international capital flows transparent and within regulated boundaries, reducing risks of illicit activity or uncontrolled speculation.

Principles of the Pilot Program

The government makes clear that the initiative is not a free pass for the crypto industry. Instead, it is guided by a set of principles that emphasize caution, transparency, safety, efficiency, and protection of participants. 

Officials explain that caution and control are necessary to prevent excessive speculation, while transparency and safety should ensure fair treatment for everyone participating in the market. They also highlight the importance of efficiency in how regulations are enforced, ensuring that oversight is practical rather than burdensome.