Vietnam Introduces Strict Controls on Crypto Industry with New Pilot Program
Vietnam, recently ranked among the top countries for cryptocurrency adoption, has launched a five-year pilot program aimed at regulating the crypto industry. The program introduces stringent requirements for companies operating in the space, according to a report by the state electronic newspaper of Vietnam. This move underscores the government’s efforts to balance the growth of the crypto market with the need for oversight and protection of investors.
The pilot program, which came into effect immediately, mandates that all crypto transactions be conducted in Vietnamese dong. Furthermore, it stipulates that issuers of crypto assets must be Vietnamese companies, either limited liability companies or joint stock companies, as defined by the law for companies. This framework is designed to ensure that the crypto industry operates within the bounds of Vietnamese law, promoting transparency and accountability.
Regulations on Crypto Asset Issuance
The new regulations specify that crypto assets must be backed by real assets, excluding those supported by fiat currencies and securities. This approach is intended to mitigate risks associated with unbacked crypto assets and to align the industry with traditional financial norms. As reported, “Crypto assets must be issued on the basis of the underlying assets that are real assets, except for assets that are securities or Fiat currencies.” This stance reflects a cautious yet progressive attitude towards cryptocurrency, acknowledging its potential while addressing concerns about volatility and stability.
The resolution also outlines that foreign investors can only issue crypto assets through Crypto Asset Service Providers (CASPs) licensed by the Ministry of Finance. This provision aims to regulate foreign participation in the Vietnamese crypto market, ensuring that all activities are monitored and compliant with national regulations. The emphasis on licensed service providers underscores the government’s commitment to security, transparency, and the protection of investor rights.
Capital and Personnel Requirements for CASPs
To operate as a CASP, companies must maintain a minimum capital of 10 trillion dong (approximately 379 million US dollars), contributed by at least two companies representing commercial banks, securities companies, fund management firms, insurance companies, and technology sector businesses. This requirement is designed to ensure that CASPs have the financial stability to manage risks and protect investors. Additionally, shareholders and capital contributors must have a profitable business record for two consecutive years prior to the application year, further reinforcing the stability and credibility of these entities.
Moreover, the pilot program sets stringent personnel requirements, mandating that CEOs have at least two years of professional experience in finance, securities, banking, insurance, or fund management, while Chief Technology Officers must have five years of experience. This emphasis on experienced leadership is meant to guarantee that CASPs are managed by individuals with a deep understanding of both the financial and technological aspects of the crypto industry. Furthermore, licenship applicants must employ at least 10 personnel in their technology department with relevant educational backgrounds, highlighting the importance of expertise in navigating the complex crypto landscape.
The introduction of this pilot program follows the approval of the law on the digital technology industry in June, which is scheduled to come into effect in January 2026. This legislation will provide crypto assets with legal status, marking a significant step towards Vietnam’s ambition to become a digital tech hub. As the country navigates the challenges and opportunities presented by cryptocurrencies, its regulatory approach will be closely watched by both domestic and international stakeholders.
For more information on Vietnam’s crypto pilot program and its implications for the global crypto market, visit https://cointelegraph.com/news/vietnam-five-year-crypto-pilot-strict-controls?utm_source=rss_feed&utm_medium=rss_tag_regulation&utm_campaign=rss_partner_inbound.
