Vietnam's finance ministry is drafting rules that would prevent local residents from trading on foreign cryptocurrency platforms, according to a Reuters report. The proposed restrictions aim to curb capital outflows and improve regulatory control over digital asset activity. Vietnam currently maintains strict restrictions on cross-border capital flows, even though it does not explicitly ban owning cryptocurrencies or trading them. However, digital assets are not recognized as money or a legal means of payment under existing laws. A ministry spokesperson confirmed authorities are working on the matter but would not comment on specific applicants.
Vietnam ranks as the fourth-largest market in the Global Crypto Adoption Index compiled by Chainalysis, making it among the most active crypto markets globally. According to Chainalysis data, transactions involving Vietnamese traders exceeded $200 billion in the 12 months to June 2025. Regulators are concerned that the growing use of cryptocurrencies and stablecoins could lead to uncontrolled capital outflows, particularly in a market where domestic investment channels remain limited. Locals are known to rely on overseas centralized exchanges such as Binance, OKX, and Bybit for trading activities. The heavy use of crypto and stablecoins has helped drive gold prices above global levels and fueled waves of housing speculation, as reported by Reuters.
Last month, Vietnam began a pilot licensing program for cryptocurrency exchanges, with oversight handled by the State Securities Commission. According to a Finance Ministry document dated March 12, five companies have passed an initial qualification round for Vietnam's pilot licensing program. The participating companies include affiliates of three Vietnamese private banks - Techcombank, VPBank, and LPBank - alongside VIX Securities and Sun Group, one of the country's largest private conglomerates. Sun Group and VPBank have confirmed their license applications, while the other three firms did not immediately respond to requests for comment. As reported by Reuters, Vietnamese firms are racing to secure licenses for the country's first domestic cryptocurrency exchanges as Hanoi moves to restrict trading on foreign platforms.
Hanoi plans to roll out the pilot program for locally run digital-asset exchanges as soon as March 2026, according to a government resolution issued in February. This timeline represents a significant acceleration in Vietnam's regulatory framework for cryptocurrency trading. The pilot scheme is part of a broader effort to tighten oversight of crypto trading and capital flows, addressing authorities' growing concerns about the use of cryptocurrencies and stablecoins amid a rise in popularity regionally. Vietnam passed a landmark law officially recognizing digital and crypto assets early last year, outlining a broad framework for managing crypto and fostering innovation in the sector.
Industry stakeholders believe the rollout of licensed domestic exchanges could help keep transaction fees within the country while supporting the growth of Vietnam's digital financial ecosystem. Phan Duc Trung, chairman of the Vietnam Blockchain and Digital Assets Association, said successful domestic exchanges could help keep transaction fees inside the country and support the development of Vietnam's digital financial services industry. However, he cautioned that the legal framework remains incomplete, particularly in areas such as supervision, taxation and risk management. The move could reshape a market that has grown fast with little formal oversight, as reported by Reuters.