No companies apply for Vietnam crypto pilot amid high barriers
News Summary
Vietnam’s Ministry of Finance has confirmed that no companies have applied to participate in the country’s five-year digital asset trading pilot program, despite rising global interest in regulated crypto markets. Deputy Minister of Finance Nguyen Duc Chi stated that the ministry has not yet received any proposals from enterprises seeking to pilot digital asset trading in the country. The pilot will allow a maximum of five participants, and the ministry hopes to launch it before 2026, though progress depends on enterprises meeting the required conditions. The lack of applicants highlights the heavy compliance hurdles and narrow product scope companies must navigate to qualify. These include significant capital requirements (a minimum of 10 trillion dong, approximately $379 million, comparable to commercial banks), strict staffing limitations, and restrictions on the crypto products that can be offered. Notably, Vietnam is restricting the issuance of crypto assets backed by fiat currencies or securities, effectively ruling out most stablecoins and tokenized securities. In contrast, other Southeast Asian jurisdictions like Singapore, Hong Kong, and Japan offer non-bank pathways with lighter capital requirements, typically ranging from $1 million to $5 million.
Background
Global interest in regulated crypto markets continues to rise, with many nations exploring how to integrate digital assets into their financial frameworks. Against this backdrop, the Vietnamese government issued Resolution 05/2025 in 2025, officially launching a long-awaited crypto pilot aimed at exploring a regulatory framework for digital asset trading. Concurrently, specific segments of crypto assets, such as stablecoins and tokenized treasuries, are experiencing significant growth. Stablecoin supply has surpassed $300 billion, and tokenized treasuries have climbed above $8 billion. These trends indicate increasing demand from both institutional and retail investors for yield, collateral, and faster settlement within digital assets.
In-Depth AI Insights
What are the underlying strategic motivations for Vietnam's unusually stringent and restrictive stance on digital assets, contrasting sharply with its regional peers? - Vietnam's policy appears to prioritize financial stability and state control over rapid innovation. The exorbitant minimum capital requirement of $379 million suggests a deliberate aim to involve only established, traditional financial institutions rather than agile fintech startups. This likely serves to minimize risk, prevent potential capital flight, and safeguard the existing financial system when introducing a new and volatile digital asset market. - Furthermore, the restriction on fiat-backed stablecoins and tokenized securities clearly reflects the Vietnamese government's intent to preserve monetary sovereignty and prevent the emergence of parallel financial systems that could undermine the national currency or existing banking infrastructure. How might this highly conservative approach impact Vietnam's long-term competitiveness within the Southeast Asian digital asset landscape? - This approach risks significantly hampering Vietnam's competitiveness in regional digital asset innovation. The high barriers to entry put Vietnam at a distinct disadvantage in attracting digital asset businesses and investments compared to jurisdictions like Singapore or Hong Kong, which offer clearer and more permissive regulatory frameworks. - It could lead to a 'brain drain' of digital asset talent and capital to more attractive markets, thereby stifling the growth of Vietnam's digital economy. Foreign investors looking to tap into Southeast Asia's burgeoning digital markets may opt to bypass Vietnam in favor of countries offering a wider array of products and lighter regulatory burdens. What broader implications does Vietnam's stalled pilot have for the future trajectory of global crypto regulation? - Vietnam's case highlights the pervasive global tension between fostering digital innovation and maintaining financial stability and national interests. It suggests that not all nations, especially emerging markets, will readily embrace more liberal regulatory models, with concerns over capital control and systemic risk potentially taking precedence. - This foreshadows a continued fragmented global regulatory landscape for cryptocurrencies, where countries adopt vastly different strategies based on their unique economic conditions, political objectives, and risk appetites. Investors must recognize that market access and product availability will vary significantly by country, necessitating deep analysis of specific jurisdictional regulatory environments.