Vietnam is moving forward with its cryptocurrency market plan, outlining a framework to license several exchanges under a new pilot program.
summary
- Vietnam’s Ministry of Finance plans to license only a small number of crypto exchanges under a newly launched five-year pilot program.
- The country aims to regulate the issuance, trading, and payments of virtual currencies within an official framework.
- Vietnam is trying to bring offshore crypto activity onshore, with more than 17 million traders and $100 billion in annual trading volume.
Nguyen Duc Chi, Deputy Minister of Vietnam’s Ministry of Finance, revealed at a recent government press conference that only a few exchanges will be approved for cryptocurrency market testing. According to local media, only five companies will be allowed to operate at this stage.
His comments follow the recent launch of a five-year pilot program for cryptocurrency market trading, which aims to bring the issuance, trading, and payments of cryptocurrencies within a regulatory framework. The minister added that although strong interest is expected, no applications have yet been received from companies wishing to participate.
To conduct this experiment, the government is developing a detailed implementation plan that includes taxation, transaction fees, accounting standards, and anti-money laundering regulations. The ministry is also coordinating with other institutions such as the State Bank and the Ministry of Public Security to finalize the licensing process.
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Mr Chee stressed that the government aims to license eligible companies and start operations by 2026, but progress will depend on how quickly companies are ready to meet the requirements.
The pilot program aims to bring Vietnam’s cryptocurrency activities into the country.
The new pilot program is part of a broader plan to bring the country’s rapidly growing cryptocurrency market under official oversight. Despite having one of the highest cryptocurrency adoption rates in the world, most trading activity remains offshore.
By licensing a small number of exchanges, the government aims to bring more of this activity into the country and tap into Vietnam’s estimated 17 million traders. Annual trading volume is thought to exceed $100 billion, much of which currently flows through foreign exchanges.
The program also aims to strengthen the integration of cryptocurrencies and regional financial systems. The pilot will require licensed exchanges to offer direct trading in Vietnamese dong, linking digital assets more closely with the national economy.
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