Vietnam is moving to formalize its rapidly expanding cryptocurrency sector with a high-speed regulatory overhaul led by Prime Minister Pham Minh Chinh. During a national online conference on January 6, the Prime Minister instructed relevant government agencies to finalize the licensing for a select group of pilot digital asset exchanges before January 15. This initiative is part of a broader “sandbox” framework designed to test market stability and regulatory responses within a controlled environment. The government’s move toward formalization comes as domestic and foreign investor interest in the region has spiked, particularly following the initial launch of a pilot framework in late 2025.
The launch of this regulatory sandbox coincides with the implementation of the Law on Digital Technology Industry, which officially took effect on January 1, 2026. This landmark legislation provides a definitive legal foundation for the digital economy by explicitly classifying digital assets alongside critical sectors such as artificial intelligence and semiconductors. By integrating digital assets into the national legal code, Vietnam aims to transition its crypto trade from an informal, high-risk market into a transparent, institutionalized sector. However, the government is maintaining a “tight leash” during this phase, with the State Securities Commission indicating that only five companies will be selected to participate in the initial pilot.
The criteria for entry into the sandbox are intentionally stringent, designed to ensure that only the most financially robust institutions can participate. Applicants are required to post a minimum charter capital of approximately $400 million, and the ownership structure must be heavily institutionalized. Specifically, institutions must hold at least 65% of an exchange’s charter capital, with a significant portion of that coming from established entities such as commercial banks, insurers, or technology firms. This high barrier to entry is intended to mitigate volatility and ensure that service providers have the professional capacity to manage large-scale digital asset operations safely.
Beyond capital requirements, the Vietnamese government is enforcing rigorous operational and security standards. Participating companies must demonstrate a clean financial history, including at least two years of audited profits with unqualified opinions. On the technical side, service providers are mandated to meet Level 4 IT safety standards—a high-tier requirement on a five-level scale—to protect against cyber threats and systemic failures. These measures reflect a cautious approach aimed at protecting the broader financial system while still allowing for technological innovation.
The oversight of the crypto sandbox is a multi-agency effort, ensuring that no single entity carries the full burden of enforcement. The Ministry of Finance serves as the primary overseer of exchange operations, while the State Bank of Vietnam is tasked with monitoring capital flows to prevent money laundering and ensure financial integrity. Simultaneously, the Ministry of Public Security is responsible for investigating and tackling high-tech crimes. This collaborative model is intended to create a secure ecosystem where digital asset trading can flourish without compromising national security or economic stability.
