What is the investor protection mechanism in Vietnam’s crypto market?
Vietnam’s investor protection mechanism for the crypto market has evolved from a past “legal gray area” into a dynamic safeguard framework centered on legal title recognition, combined with pilot licensing schemes and administrative oversight.
1. Core Legal Recognition and Property Protection
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Establishment of Legal “Property” Status: Under the Law on Digital Technology Industry, crypto assets are explicitly categorized as “property” rather than “legal tender.” Investors enjoy rights of ownership, transaction, and inheritance protected under civil law. In events such as platform exit scams, fraud, or civil disputes, investors have a clear legal basis for rights protection and litigation.
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Prohibition of Illegal Payments and Money Laundering: While property status is recognized, using crypto as a compliant payment tool remains strictly prohibited, effectively isolating risks associated with illicit capital flows.
- Vietnam crypto exchange
2. Market Access and Issuance Protection Mechanism (Resolution No. 05/2025/NQ-CP)
Under the pilot framework for crypto assets, Vietnam enforces strict risk prevention at the source:
| Protection Stage | Specific Safeguards & Access Requirements |
| Real World Asset (RWA) Backing | Issuance projects must be backed by or mapped to physical Real World Assets (RWA). Purely speculative token issuances without underlying asset support are strictly forbidden, ensuring investment targets retain a tangible value base. |
| Mandatory Information Disclosure | Issuers must disclose full prospectuses and audited financial reports on licensed service provider platforms and official company websites at least 15 days prior to a public offering to protect investors’ right to know. |
| High-Threshold Provider Licensing | Trading platforms and custody service providers must obtain licenses from the Ministry of Finance. Institutional shareholders must hold at least 65% of equity (which must include commercial banks, securities firms, or high-tech enterprises) to guarantee sufficient risk resistance, capital, and technical capability. |
3. System Security and Administrative Compliance Supervision (Decree No. 284/2026/NĐ-CP)
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Network & Custody Security Standards: Regulatory authorities enforce rigid benchmarks on cybersecurity standards, cold/hot wallet risk controls, and information security measures for exchanges and custodians to prevent cyberattacks and asset theft.
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Penalties for Administrative Offenses: Specific penalty decrees target false advertising, market manipulation, unauthorized public offerings, and money laundering / anti-terrorist financing (AML/CFT) violations, building a fair and compliant trading environment.