Vietnam is reportedly looking to tighten restrictions on overseas cryptocurrency trading as authorities move to bring more activity under domestic oversight.
Summary
- Vietnam is preparing rules to restrict overseas crypto trading, with authorities aiming to curb capital outflows and tighten oversight of digital asset activity.
- Five firms, including affiliates of Techcombank, VPBank, and LPBank, have cleared an initial round to participate in the country’s pilot licensing program for domestic crypto exchanges.
According to a Reuters report, Vietnam’s finance ministry is drafting rules that would prevent local residents from trading on foreign crypto platforms, in a bid to curb capital outflows and improve regulatory control.
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.
As such, locals are often known to rely on overseas centralized exchanges such as Binance, OKX, and Bybit, the report said.
Vietnam is among the most active crypto markets globally and ranks as the fourth-largest market in the Global Crypto Adoption Index compiled by Chainalysis.
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.
Local crypto exchanges seek licenses
Last month, crypto.news reported that Vietnam had begun a pilot licensing program for cryptocurrency exchanges, with oversight to be handled by the State Securities Commission.
Authorities plan to establish a regulated framework for locally operated exchanges that will allow approved firms to run compliant trading platforms within the country.
According to a Finance Ministry document dated March 12, cited in the report, five companies have passed an initial qualification round for Vietnam’s pilot licensing program.
Among the companies involved are affiliates of three Vietnamese private banks, Techcombank, VPBank, and LPBank, alongside VIX Securities, which has already moved to develop its own crypto asset exchange infrastructure, and Sun Group, one of the country’s largest private conglomerates.
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.
