Vietnam Crypto Legal Status: How Bitcoin Trading Is Now Legally Regulated After Years of Gray Area

alt Dec, 4 2025

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For nearly eight years, Vietnam’s crypto scene lived in a gray zone. You could buy Bitcoin on local exchanges, trade NFTs, and even use crypto for peer-to-peer payments - but no court could guarantee your ownership, no regulator could protect you, and no bank would touch your transaction. That changed on June 14, 2025, when Vietnam’s National Assembly passed Law No. 71/2025/QH15 on Digital Technology Industry. For the first time, crypto assets are legally recognized - not banned, not ignored, but fully integrated into the country’s civil and financial system.

From Legal Ambiguity to Clear Rules

Before 2025, Vietnam’s stance on crypto was confusing. The State Bank of Vietnam had repeatedly warned that Bitcoin and other digital assets weren’t legal tender. But they didn’t outlaw them either. People traded anyway. Local platforms like VinaBtc and SushiSwap Vietnam thrived. Courts struggled to resolve disputes - if someone stole your crypto, could you sue? If a company went bankrupt and held Bitcoin, was it part of the estate? The answer was always: it’s complicated.

That ended with the new law. Crypto assets are now classified as digital property under Vietnamese civil law. You can own them, inherit them, sell them, and enforce contracts tied to them. Smart contracts are legally binding. This isn’t just a policy shift - it’s a legal revolution.

The New Regulatory Framework: What’s Allowed and What’s Not

The government didn’t just legalize crypto. It built a strict, controlled system around it. The key rules, laid out in Resolution 05/2025/NQ-CP signed in September 2025, are clear:

  • All crypto transactions must be settled in Vietnamese dong (VND). You can’t trade BTC for USDT or ETH for USD inside Vietnam.
  • Only Vietnamese-registered companies can issue or operate as Crypto Asset Service Providers (CASPs). These must be limited liability companies or joint stock companies under Vietnam’s Enterprise Law.
  • CASPs need a minimum capital of 10 trillion VND (about $400 million USD) to operate. This isn’t a suggestion - it’s a hard barrier to entry.
  • Crypto assets can only be backed by real, physical assets - gold, real estate, commodities. Stablecoins tied to fiat currencies like USD or EUR are banned.
  • Domestic investors must use licensed CASPs for all trading. A six-month grace period after the first license is issued gives people time to switch.
  • Foreign investors can participate, but only through licensed CASPs. They can’t trade directly on peer-to-peer platforms.

What Types of Crypto Are Allowed?

The law doesn’t treat all digital assets the same. It defines three categories:

  • Virtual assets: Used for exchange or investment in digital environments - this includes Bitcoin, Ethereum, and other major coins.
  • Crypto assets: Built on encryption technology for authentication and transfer - think tokens with blockchain-based ownership records.
  • Other digital assets: Includes NFTs, utility tokens, and digital collectibles with broader use cases beyond trading.
But here’s what’s explicitly excluded: securities, digital forms of the Vietnamese dong, and any asset already regulated under financial laws. That means no tokenized stocks, no CBDCs under this law, and no crypto derivatives.

Split scene: chaotic unlicensed crypto trading vs. orderly licensed CASP trading floor in Vietnam

Why the Strict Controls?

Vietnam isn’t trying to be a crypto paradise. It’s trying to be a controlled innovation hub. The government’s goal is to prevent money laundering, stop capital flight, and protect ordinary investors from scams. The 10 trillion VND capital requirement isn’t just about funding - it’s about accountability. Only well-capitalized, audited firms can operate. That’s why most small exchanges are shutting down or merging.

The ban on fiat-backed stablecoins is also strategic. In countries like the U.S. or Singapore, USDT and USDC dominate trading. Vietnam wants to keep its financial system insulated from foreign currency volatility. By forcing all trades to go through VND, the State Bank retains control over capital flows.

What This Means for Traders and Investors

If you’re a Vietnamese citizen buying Bitcoin today, you have two choices: wait for a licensed CASP to launch, or keep trading on unregulated platforms - risking legal exposure. After the six-month transition period, using unlicensed services will be a violation. Penalties range from fines to criminal liability, depending on the scale of the activity.

For foreign investors, the door is open - but only through licensed channels. That means if you’re an international trader looking to access Vietnam’s crypto market, you’ll need to partner with a Vietnamese CASP. It’s not as open as Singapore or Dubai, but it’s more predictable.

Market Impact: Who Wins and Who Loses

The new rules are already reshaping the market. Before 2025, Vietnam had over 30 local crypto exchanges. Today, only three have applied for licenses. All are backed by major tech conglomerates or financial groups with the capital to meet the 10 trillion VND threshold.

Small traders who used peer-to-peer apps like Paxful or LocalBitcoins are being pushed out. Many have moved to offshore platforms - but now they’re doing so without legal protection. If they get hacked or scammed, Vietnamese courts won’t help.

On the flip side, companies building DeFi tools, NFT marketplaces, and blockchain-based supply chain solutions are seeing new opportunities. With smart contracts now enforceable, businesses can build real products on top of crypto infrastructure - something that was impossible before.

Dragon made of blockchain and gold bars breathing Vietnamese dong, with foreign investors handing keys to regulators

Taxes, Compliance, and the Future

Crypto transactions are currently taxed like securities. Profits from trading are subject to capital gains tax, but no official rate has been set yet. The Ministry of Finance is expected to issue detailed tax guidelines by mid-2026.

All CASPs must comply with anti-money laundering (AML) and counter-terrorism financing (CTF) rules. That means Know Your Customer (KYC) checks, transaction monitoring, and reporting suspicious activity - just like banks.

The law includes a five-year pilot period. That means the rules can be adjusted. If the system works, it becomes permanent. If it causes too much friction, the government can tweak it - or even reverse course. But for now, the direction is clear: Vietnam is betting big on digital assets - on its own terms.

Why This Matters Beyond Vietnam

Vietnam is the first country in the world to create a comprehensive legal framework that recognizes crypto as property while strictly controlling its use. Most nations either ban crypto (like China) or treat it like a financial instrument (like the U.S. or EU). Vietnam did something different: it created a middle path.

Other Southeast Asian countries - Thailand, Indonesia, the Philippines - are watching closely. If Vietnam’s model reduces fraud, keeps capital domestic, and still allows innovation, they may copy it. That could make the region a global testing ground for balanced crypto regulation.

What You Should Do Now

If you’re in Vietnam:

  • Don’t use unlicensed platforms after the six-month grace period ends.
  • Wait for the first licensed CASP to launch - expect announcements from major banks or tech firms by early 2026.
  • Keep records of all past transactions. They may be needed for tax or legal purposes.
If you’re outside Vietnam:

  • Don’t assume you can trade freely with Vietnamese users. Any transaction must go through a licensed CASP.
  • Watch for partnerships between Vietnamese firms and international crypto platforms - those will be the gateways to the market.
The gray area is over. Vietnam didn’t shut down crypto - it brought it inside, under strict rules. The era of unregulated trading is ending. The era of regulated innovation has begun.

Is Bitcoin legal in Vietnam as of 2025?

Yes, Bitcoin is legal in Vietnam as of 2025, but only under strict conditions. The country passed its first comprehensive crypto law in June 2025, recognizing Bitcoin and other digital assets as property. However, trading must happen through licensed service providers, and all transactions must be settled in Vietnamese dong. You can’t use Bitcoin to pay for goods or services directly, and peer-to-peer trading on unlicensed platforms will be illegal after the six-month transition period ending in mid-2026.

Can I buy Bitcoin in Vietnam without a license?

You can still buy Bitcoin on unlicensed platforms today, but it’s risky. After the six-month grace period following the first licensed Crypto Asset Service Provider (CASP) launch, using unregulated platforms will violate the law. You could face administrative penalties, fines, or even criminal liability if authorities determine your activity is significant or repeated. The safest path is to wait for licensed CASPs to open - expected in early 2026.

Are stablecoins like USDT allowed in Vietnam?

No, stablecoins tied to foreign currencies like USDT or USDC are banned under Vietnam’s new crypto law. The law only permits crypto assets backed by real, physical assets - such as gold, real estate, or commodities. This rule was designed to prevent capital flight and keep financial flows within the Vietnamese dong system. Any stablecoin that mirrors a foreign currency cannot be issued or traded in Vietnam.

Do I have to pay taxes on crypto profits in Vietnam?

Yes, crypto profits are currently taxed like securities under Vietnam’s tax code. The exact rate hasn’t been finalized yet, but capital gains from trading Bitcoin or other digital assets will be subject to income tax. The Ministry of Finance plans to issue detailed tax guidelines by mid-2026. Until then, keep records of all your buy/sell transactions - you’ll need them when the rules are officially published.

Can foreign investors trade crypto in Vietnam?

Yes, but only through licensed Vietnamese Crypto Asset Service Providers (CASPs). Foreign investors cannot trade directly on local exchanges or peer-to-peer platforms. They must go through a registered CASP that complies with Vietnam’s capital requirements, KYC rules, and transaction reporting standards. This gives Vietnam control over cross-border crypto flows while still allowing international participation.

What happens if I violate Vietnam’s crypto rules?

Violations can lead to administrative penalties, including fines, suspension of operations, or asset seizure. If the violation involves large-scale trading, money laundering, or fraud, you could face criminal charges under Vietnam’s penal code. The government has made it clear: they’re not banning crypto - they’re bringing it under control. Breaking the rules now carries real consequences.

11 Comments

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    Adam Bosworth

    December 5, 2025 AT 09:54
    lol so now Vietnam's gonna be the next crypto sandbox? 🤡 they ban USDT but let gold-backed tokens? that's like saying 'you can own a diamond but not cash'. what a joke.
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    Chloe Hayslett

    December 7, 2025 AT 08:11
    Of course the U.S. is gonna cry about this. They’ve been outsourcing their regulatory incompetence to Vietnam for years. Now they’re mad because someone finally did it right.
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    Chris Jenny

    December 8, 2025 AT 12:14
    This is a trap... they're not legalizing crypto... they're preparing to seize it. Watch. In 18 months, every CASP will be state-owned. The 10 trillion VND requirement? That's not a barrier-it's a bribe. They want your keys, not your money.
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    Jerry Perisho

    December 9, 2025 AT 01:52
    The real win here is smart contracts being enforceable. That’s huge for DeFi builders. No more 'it's just code' excuses when someone reneges. Vietnam just gave developers legal teeth.
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    Mairead Stiùbhart

    December 9, 2025 AT 08:30
    So they banned USDT because they're scared of the dollar? Cute. Meanwhile, the entire world is moving toward stablecoins. Vietnam's building a digital castle... on sand.
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    Renelle Wilson

    December 9, 2025 AT 11:38
    It's fascinating to see a nation prioritize financial sovereignty over global integration. While others chase liquidity, Vietnam is choosing control. This isn't anti-innovation-it's anti-exploitation. The capital requirements protect retail investors from fly-by-night operators. That’s actually responsible.
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    Noriko Robinson

    December 10, 2025 AT 07:07
    I’ve been watching this unfold and honestly? This might be the most balanced approach I’ve seen. Not too loose, not too draconian. The VND-only rule keeps capital home, the licensing prevents chaos, and allowing NFTs and utility tokens? That’s smart. They’re not banning tech-they’re guiding it.
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    Uzoma Jenfrancis

    December 10, 2025 AT 14:34
    Good. Vietnam doesn’t need foreign currency games. We build our own future. No more dollar dominance. No more scams from overseas. Our people, our rules. This law is the first step to true digital independence.
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    Thomas Downey

    December 11, 2025 AT 16:06
    The notion that this is 'innovation' is laughable. This is regulatory authoritarianism disguised as progress. You don’t build a digital economy by forcing citizens into state-approved gatekeepers. You build it by empowering individuals. Vietnam just chose control over freedom.
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    Vincent Cameron

    December 11, 2025 AT 16:28
    It’s interesting how the law distinguishes between virtual assets and crypto assets. That’s not just semantics-it’s a philosophical stance. One is speculative, the other is infrastructural. They’re trying to separate the casino from the plumbing. Most countries don’t even realize the difference.
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    Annette LeRoux

    December 13, 2025 AT 07:53
    I just hope they don’t forget the humans behind the rules. The guy in Hanoi who bought Bitcoin in 2017 with his savings? He’s not a 'speculator'-he’s a dad trying to send his kid to college. The law needs to protect him, not just the big firms. 🤍

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