Vietnam bans issuance of fiat-backed crypto assets

Vietnam—consistently ranked among the world’s top countries for grassroots crypto adoption—has taken a bold regulatory leap with the launch of a sweeping five-year cryptocurrency market pilot.

The framework, effective immediately, signals Hanoi’s cautious but calculated entry into regulated digital assets. By dramatically tightening requirements for issuers, trading platforms, and investors, the move reflects both ambition to shape a compliant market and skepticism toward the unchecked rise of crypto.

Signed into law by Deputy Prime Minister Ho Duc Phoc, the resolution mandates that all issuance, trading, and payments involving digital assets be conducted exclusively in Vietnamese dong.

Additionally, only locally registered enterprises—either limited liability companies or joint stock firms—are permitted to issue crypto assets, and even then, they may only offer them to foreign investors through crypto asset service providers (CASPs) licensed by the Ministry of Finance.

Crucially, the program bans the issuance of any cryptocurrency backed by fiat currencies, including stablecoins, or securities. Instead, tokens must be tied to “real, underlying assets,” explicitly excluding any class deemed a security or national currency.

Industry Entry Bar Raised Sky-High

The pilot sets an exceptionally high threshold for market participation. CASPs are required to maintain a minimum charter capital of 10 trillion dong, with at least 65% coming from institutional players such as commercial banks, fund managers, insurers, or technology companies.

Shareholders and capital-contributing members must also show a track record of profitability for at least two consecutive years before applying for a license.

On the leadership side, CEOs must have a minimum of two years of professional experience in finance, securities, banking, insurance, or fund management, while chief technology officers are required to bring at least five years of relevant expertise.

Applicants must further staff a dedicated technology team of no fewer than 10 qualified employees with relevant educational backgrounds.

A Step Toward Becoming a Digital Tech Hub

The pilot arrives shortly after Vietnam’s passage of the Law on Digital Technology Industry in June, which will take effect in January 2026. That legislation formally grants legal status to crypto assets and reinforces the country’s ambition to establish itself as a future digital technology hub in Asia.

By setting the bar high, Vietnam’s government is betting on strict oversight to balance innovation with risk control—potentially setting a precedent for other emerging markets navigating the line between adoption and regulation.