Vietnam Bans Cryptocurrency? Regulatory Crackdown Accelerates: Banned for Payments, Standardized Under Licensed and Taxed Framework
the latest regulatory framework provides a clear answer: Vietnam has not banned the holding or investment trading of cryptocurrency, but strictly prohibits its use as a legal payment instrument. With the passage of regulatory frameworks such as the Law on Digital Technology Industry by the National Assembly of Vietnam, the country is officially transitioning crypto assets from a former “gray area” into a new era of legal compliance, licensed operations, and taxation.
VIETNAM TIGHTENS CRYPTO RULES FROM SEPTEMBER 1
Vietnam is tightening crypto regulation from September 1.
VND 10T (~$383M) minimum capital
Level 4 cybersecurity required
5 firms cleared initial assessment
No exchange has a final license yet
Penalties for unlicensed activity begin
Domestic investors get a 6-month transition after the first license
Vietnam is not banning crypto, it is moving toward a highly regulated market that could favor large financial players.
1. The Red Line: Banned as a Payment Method with Heavy Fines
According to the latest administrative penalty regulations issued by the State Bank of Vietnam and the government, using Bitcoin or other cryptocurrencies for buying goods, settling services, or serving as circulating legal tender within Vietnam is illegal. Specific governmental decrees stipulate that issuing, releasing, or using unauthorized payment instruments can incur administrative fines of up to 200 million VND (approx. $8,000 USD).
2. Investment Recognized: Integrated into Digital Asset Legislation as Property
Distinct from the payment prohibition, the Vietnamese government is accelerating the legalization of crypto assets as an investment class. The Law on Digital Technology Industry passed by the National Assembly formally incorporates “digital assets” into the legal regulatory structure, establishing their status as legal property under the Civil Code. This significantly reduces legal risks for investors holding and transferring crypto assets while placing their legitimate rights under legal protection.
3. Market Standardization: Licensing Pilot Programs and Individual Income Tax
To curb money laundering risks and standardize market order, the Ministry of Finance and related agencies in Vietnam are implementing comprehensive regulatory measures:
Licensed Pilots: The government is pushing forward a pilot scheme for Virtual Asset Service Providers (VASPs), establishing a licensing regime for exchanges and restricting investor transactions to officially approved platforms.
Tax Compliance: Vietnam has implemented a fixed 0.1% individual income tax on personal cryptocurrency transactions, signaling the formal integration of the crypto market into the national tax framework.
In conclusion, asserting that “Vietnam has banned cryptocurrency” is inaccurate. Vietnam is pursuing a strategy of decoupling payment functionality from crypto assets while regulating investment transactions through licensing and taxation. This approach aims to mitigate financial system risks while steering the digital economy toward sustainable, orderly growth.（Vietnam Crypto Exchange）