A market of 17 million users: What must Vietnamese digital asset platforms do to compete?
Legalizing crypto assets opens up opportunities to attract foreign capital, but Vietnam needs assets linked to domestic businesses for international funds to flow in.
Now that the digital asset market has a legal framework, including Decree 284/2026/ND-CP on administrative penalties for violations in the field of crypto assets and the crypto asset market, which came into effect on September 1st, the next challenge is how to transform this legal framework into an opportunity to attract foreign capital.
For international capital to truly flow into Vietnam, the market needs not only licensed exchanges but also assets linked to domestic businesses , creating a foundation for international investors to participate.
Speaking with a reporter from Dan Tri newspaper , Mr. Tran Xuan Tien, General Secretary of the Ho Chi Minh City Blockchain Association, commented on the opportunity to attract foreign capital when the digital asset market is legalized.
Once the digital asset market is legalized and has a formal licensing mechanism, what types of capital flows can Vietnam expect to attract from international investment funds, financial institutions , and businesses? In your opinion, which group of capital is most likely to enter the market soonest?
– When the market has a clear legal framework, one can first expect capital flows from legally operating financial institutions. These could be organizations operating in the financial, securities , and other investment markets; seeing that the digital asset market has a legal framework, they may begin allocating a portion of their capital to seek opportunities.
Furthermore, some businesses may also invest capital in the market once regulations are clearly defined and specific investment opportunities emerge. When the market is officially recognized, the mindset of organizations and businesses will also differ from the period when the market was still in an area of legal uncertainty.
But in my opinion, the more important issue is that Vietnam must have assets for foreign investors to invest in.
If domestic exchanges, after being licensed, only focus on trading Bitcoin, Ethereum, or other globally popular assets, it is difficult to expect a large amount of foreign capital to flow into Vietnam. Foreign investors who want to buy Bitcoin or Ethereum do not necessarily have to bring money into Vietnam, because they can trade these assets on international platforms.
Therefore, to attract genuine foreign investment, Vietnam needs policies that allow domestic businesses to issue and list digital assets on domestic exchanges. This would enable foreign investors to purchase assets associated with Vietnamese businesses, and new capital would truly flow into Vietnamese businesses and the economy.
With a large transaction volume and approximately 17 million market participants, how do you assess Vietnam’s potential on the regional digital asset map? How will the legalization of the market help Vietnam compete with Singapore, Hong Kong (China), and the UAE?
Vietnam has a clear advantage in terms of user size. Approximately 17 million people participating in the digital asset market is a significant number. Vietnamese people are also quite tech-savvy, able to quickly access and readily experiment with new products.
This is a crucial foundation for the formation of a domestic digital asset market. With a sufficiently large user base, businesses will have the incentive to develop products and services and invest in infrastructure to serve the market.
However, it’s unrealistic to assume that simply having 17 million users will automatically guarantee the success of a domestic exchange. Users will choose a platform with good products, high liquidity, numerous features, and a convenient user experience.
Think of it like the social media landscape. Vietnam has many Facebook users, but if a new social media platform emerges, it doesn’t mean users will immediately switch. The new platform must have features, a good experience, and sufficient value to be competitive.
The same applies to the digital asset market. The scale of the user base is a huge advantage, but domestic exchanges must demonstrate their capabilities in terms of products, technology, liquidity, and services.
However, when comparing it to Singapore, Hong Kong, or the UAE, a different perspective is needed. These are all international financial centers capable of attracting capital from many countries and serving global investors. A Vietnamese exchange that primarily serves Vietnamese users cannot yet compete on the same level as these centers.
Therefore, Vietnam needs not only to build its domestic market but also to have policies that enable Vietnamese businesses and exchanges to expand into international markets. Only when domestic businesses are able to provide products to international users and attract foreign capital can the Vietnamese digital asset market expand in scale.
With international exchanges like Binance, OKX, and MEXC having to reconsider their presence in Vietnam, what should Vietnam do to both control risks and remain attractive enough for international exchanges, investment funds, and businesses to invest long-term?
For platforms like Binance, OKX, and other international exchanges, operating in multiple countries means they are accustomed to complying with the legal regulations of each market. If Vietnam has a sufficiently attractive market and a clear legal framework, these platforms could certainly consider participating in a suitable manner.
Vietnam has the advantage of a large user base, a factor that international platforms will certainly be interested in. Binance and OKX have also previously explored and approached the Vietnamese market. Once the market is regulated, if the participation mechanisms are clear and the business conditions are suitable, the possibility of international platforms entering the market is high.
I believe that in the initial phase, Vietnam should create space for domestic exchanges to develop. Domestic businesses need time to build products, liquidity, technology, and user trust.
Subsequently, if international platforms wish to participate and meet all the requirements, Vietnam also needs a clear mechanism for their participation. The goal is not to eliminate international platforms, but to create a competitive, transparent, and risk-controlled market.
Besides a clear legal framework, what additional policies does Vietnam need regarding taxation, licensing, foreign exchange, custody, and investor protection to retain foreign capital and help the digital asset market make a substantial contribution to the economy?
The most important thing remains policy clarity. Blockchain businesses need to know exactly what they are allowed to do, what models can be implemented, what types of assets can be issued, and what conditions must be met.
Businesses can only make long-term investment decisions when they understand the rules of the game. This is also what international investors consider when choosing a market. Policies don’t necessarily have to be extremely generous, but they must be clear, stable, and predictable.
Issues such as taxation, licensing, foreign exchange, custody, and investor protection certainly need further improvement. But in my opinion, policies should not focus solely on the buying and selling of digital assets.
Blockchain also has many other business models. If the legal framework mainly only addresses the trading of digital assets, then we are only exploiting a part of the market, while the potential of blockchain technology is much broader.
In particular, there needs to be a legal framework to allow domestic businesses to issue digital assets, list those assets on exchanges, and enable foreign investors to participate transparently and under control.
It’s also important to distinguish tokens (cryptocurrencies) from traditional securities. Tokens can be both investment assets and used within the ecosystem, products, or services of the issuing company. Managing all tokens like securities could restrict new business models.
Therefore, Vietnam needs a legal framework that is clear enough but also open enough to allow businesses to develop new models, while ensuring the rights of investors and the management capacity of state agencies.
Establishing a legal framework for digital assets is a positive step, bringing a field with many gaps into a regulatory framework. Once the law is in place, it can be further amended and supplemented according to reality. Compared to developed countries, Vietnam may be 1-2 years behind, but this gap is not too large. The important thing is that we have dared to take the first step.
From that foundation, Vietnam needs to continue refining its policies so that the market not only consists of exchanges and trading activities, but also fosters the development of products, businesses, and assets linked to the domestic economy. Only then can digital assets become a channel for attracting international capital and creating real value for the economy.
For an international financial center, this is also an opportunity, but one should not expect that the digital asset trading market alone will immediately attract large capital flows. This center needs to be linked to businesses, products, and assets developed in Vietnam, while simultaneously creating mechanisms for international capital to participate in those assets.
At that time, the digital asset market would not only attract international capital but could also support the International Financial Center in playing its role in connecting Vietnam with global capital flows.
Thank you, sir!
According to Decree 284/2026/ND-CP, from September 1st, violations in the field of crypto assets can be fined up to VND 200 million for organizations and VND 100 million for individuals.
Notably, domestic investors trading cryptocurrency assets without going through a licensed service provider may be fined 30-50 million VND. In cases where the cryptocurrency assets are offered or issued to foreign investors, the fine can be as high as 70-100 million VND.
Meanwhile, to date, no cryptocurrency exchange has been officially licensed. The Ministry of Finance has received 7 pilot registration applications, of which 5 were deemed complete and valid, including SCEX, VIXEX, CAEX, TCEX, and Vietnam Digital Assets Joint Stock Company.
Mr. To Tran Hoa, Deputy Head of the Standing Committee of the Cryptocurrency Trading Market Management Board, State Securities Commission, said that after the first exchange is licensed, domestic investors have 6 months to gradually transfer their trading activities to the licensed platform.
Investors are not required to transfer all their assets to a domestic exchange. Assets can still be held in personal wallets, but when buying or selling transactions fall within the regulated scope, they must be conducted through a licensed organization.（Vietnam Crypto Exchange）