Vietnam tightens rules on crypto transactions
As Vietnam advances its five-year digital asset pilot program, the government is significantly strengthening regulatory enforcement across the cryptocurrency market. The Vietnamese government has officially promulgated Decree No. 284/2026/ND-CP, introducing formal administrative sanctions for domestic investors and service providers engaging in crypto asset activities outside approved frameworks. The new decree takes effect on September 1, 2026.
1. Key Penalties and Compliance Costs
The decree establishes specific administrative fines for individuals, service providers, and issuers operating in the crypto asset space to mitigate financial risks and curb illegal market activities:
Penalties for Individual Traders:
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Trading on Unlicensed Platforms: Domestic investors trading crypto assets through platforms not approved or licensed by the Ministry of Finance (MoF) face fines ranging from VND 30 million to VND 50 million (approx. $1,140 to $1,900).
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Trading Restricted Assets: Local investors involved in trading digital assets exclusively authorized for foreign investors face higher penalties of VND 70 million to VND 100 million (approx. $2,650 to $3,800).
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Penalties for Service Providers (Exchanges & Platforms):
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Unlicensed Operations & Unauthorized Marketing: Entities operating crypto services without an official license or conducting unauthorized advertising/marketing face fines between VND 180 million and VND 200 million (approx. $6,800 to $7,600).
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Non-Compliance with KYC Requirements: Service providers that fail to properly verify customer identity during account onboarding will be fined VND 50 million to VND 70 million.
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Data Privacy Violations: Unlawful collection, storage, sale, transfer, or public disclosure of user crypto account data incurs fines of up to VND 200 million, alongside potential business suspensions.
Penalties for Crypto Issuers:
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Entities offering or issuing crypto assets to ineligible investors, failing to meet regulatory prerequisites, or publishing misleading/inaccurate information in their prospectuses face fines of VND 150 million to VND 200 million, with operational suspensions of up to 12 months.
Note: The statutory maximum fine under Decree 284 is VND 200 million for organizations. For individuals committing identical infractions, the fine is capped at 50% of the organizational penalty (up to VND 100 million).
2. Regulatory Alignment with Resolution No. 05/2025
Decree 284 serves as an essential enforcement mechanism supporting Resolution No. 05/2025/NQ-CP, which established Vietnam’s five-year pilot framework for regulated crypto assets. Key parameters of the broader pilot include:
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VND-Denominated Trading: All offerings, listings, and trade settlements must be conducted exclusively in Vietnamese Dong (VND).
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Capped Licensing Scheme: To mitigate systemic risks during the initial pilot phase, the government plans to grant licenses to no more than five exchanges.
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High Prudential Thresholds: Applicant exchanges must be registered domestic entities with a minimum paid-up capital of VND 10 trillion (~$380 million) and observe a 49% foreign ownership cap.
3. Market Impact: Tighter Scrutiny on Offshore Exchanges
Prior to Decree 284, a substantial portion of Vietnam’s retail crypto activity took place on global offshore platforms. With the September 1 enforcement deadline approaching:
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Regulatory Risks for Offshore Platforms: Foreign exchanges serving Vietnamese residents without local corporate entities or MoF authorization face heightened compliance exposure, including potential domain/app restrictions and legal liability for local users.
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Accelerated Shift to Local Compliance: Inter-agency reviews involving the Ministry of Finance, the Ministry of Public Security, and the State Bank of Vietnam are currently evaluating initial exchange applications (including CAEX, VIX, and Loc Phat), signalling a definitive transition toward a fully licensed domestic crypto market.