Vietnam’s Five-Year Crypto Pilot May Bar Fiat-Backed Tokens, Require Transactions in Dong and Could Affect Bitcoin

• Five-year pilot mandates Vietnamese dong for crypto trading

• Issuers must be Vietnamese limited liability or joint stock companies; fiat‑backed and securities‑backed tokens are prohibited.

• Foreign investors may access offerings only via Ministry of Finance‑licensed crypto asset service providers; regulators emphasize safety and transparency.

Vietnam crypto pilot: five-year program mandates dong transactions, bans fiat-backed issuance, and requires Vietnamese issuers—read implications and regulatory details now.

What is the Vietnam crypto pilot and what does it change?

Vietnam crypto pilot is a five‑year regulatory program enacted by Deputy Prime Minister Ho Duc Phoc that defines rules for issuance, trading and payments of crypto assets. It mandates transactions in Vietnamese dong, restricts issuers to Vietnamese companies, and prohibits issuance of fiat‑ or securities‑backed tokens.

How does the pilot restrict issuance of fiat-backed crypto assets?

The resolution states crypto assets must be issued on the basis of real underlying assets and explicitly excludes fiat currencies and securities from eligible backing. Issuers are required to be Vietnamese enterprises registered as limited liability companies or joint stock companies under the Law on Enterprises.

Why does the government require Vietnamese dong for crypto transactions?

Front-loading stability and control, the government requires dong‑based transactions to preserve monetary sovereignty and improve traceability. Regulators cite objectives of safety, transparency and protection of participants’ rights in the crypto asset market.

Frequently Asked Questions

Who can issue crypto assets under the pilot?

Only Vietnamese enterprises registered as limited liability or joint stock companies under the Law on Enterprises may issue crypto assets. Foreign issuers are not permitted to directly issue tokens to domestic investors.

Can foreign investors buy tokens in this pilot?

Yes, foreign investors may receive offerings only through crypto asset service providers (CASPs) that obtain licenses from the Ministry of Finance. This channeling aims to monitor cross‑border participation while limiting direct sales.

How will the pilot affect crypto markets in practice?

Market structure will shift toward domestically‑based issuance and dong‑settled trading, likely reducing onshore fiat‑pegged stablecoin activity. Exchanges and CASPs will need Ministry of Finance licensing to offer cross‑border access. Regulators emphasize phased implementation and risk controls.

What operational steps must issuers and service providers take?

Issuers must register as Vietnamese entities and document real‑asset backing. CASPs must apply for Ministry of Finance licenses, implement KYC/AML, and ensure trading infrastructure supports dong settlement and regulatory reporting.

Key Takeaways

• Mandate on currency: All crypto transactions in the pilot must be settled in Vietnamese dong to preserve monetary control.
• Issuance limits: Issuers must be Vietnamese companies; fiat‑backed and securities‑backed tokens are prohibited.
• Regulated access for foreigners: Foreign investor participation is allowed only through Ministry of Finance‑licensed CASPs.

Conclusion

The Vietnam crypto pilot represents a cautious, structured approach to integrating crypto assets into the domestic market. By mandating dong settlements, restricting issuers to Vietnamese entities, and banning fiat‑backed issuance, regulators aim to balance innovation with financial stability. Watch for implementation guidance from the Ministry of Finance and prepare compliance steps now.

Source: Government Electronic Newspaper of Vietnam; Magazine: Bitcoin may sink ‘below $50K’ in bear, Justin Sun’s WLFI saga: Hodler’s Digest, Aug. 31 – Sept. 6.

Published: September 9, 2025
Updated: September 9, 2025