What is the purpose of Vietnam launching a domestic cryptocurrency exchange?
The core purpose of Vietnam launching a domestic cryptocurrency exchange pilot project and promoting compliance is to bring a massive market that has long operated in a regulatory vacuum under standardized supervision. Vietnam ranks among the top globally in on-chain transaction volume and cryptocurrency adoption. Its key strategic considerations include the following five aspects:
1. Curbing Capital Flight and Financial Risks
For a long time, the vast majority of cryptocurrency transactions in Vietnam took place on unlicensed offshore platforms such as Binance and OKX. Tens or even hundreds of billions of dollars flow outside the national regulatory network each year, which not only accelerates illicit capital flight but also poses potential risks to the country’s exchange rate stability and financial system. Establishing compliant domestic platforms helps keep capital within the regulated financial system. Vietnam crypto exchange
2. Increasing National Tax Revenue
In the past, due to the lack of a clear legal framework, massive digital asset transactions could not be taxed at all. By classifying crypto assets into property rights and bringing them under a securities-grade regulatory framework, the government can levy transaction and income taxes on both retail and institutional investors—similar to traditional securities trading (e.g., a proposed 0.1% transaction tax for retail investors)—thereby opening up a substantial new revenue source.
3. Preventing Money Laundering and Combating Illicit Finance (AML/CFT)
Without regulation, cryptocurrency easily becomes a high-risk avenue for underground banking, telecom fraud, and money laundering (AML). Domestic exchanges require strict Know Your Customer (KYC) identity verification and anti-money laundering compliance checks, significantly enhancing transaction transparency to align with Financial Action Task Force (FATF) standards.
4. Protecting the Rights and Interests of Domestic Investors
Vietnam has a large base of retail traders who were previously left without legal recourse when hit by black swan events on offshore platforms, scam projects, or de-pegging crises. By strictly auditing the financial strength, IT infrastructure, and custody protections of licensed domestic institutions (e.g., requiring at least 65% of equity to be held by financial institutions or major technology companies), the government can better safeguard investors’ funds.