What Conditions Must TCEX Meet for Official Operation?
With the implementation of Vietnam’s Law on Digital Technology Industry and the pilot program for national crypto-asset exchange licensing, the Vietnamese cryptocurrency market is rapidly moving from a “grey area” into an era of strict regulation. Against this backdrop, as one of the key candidate platforms for the local pilot program, TCEX Exchange must fulfill several core conditions to achieve legal and official commercial operations:
I. Meeting Local Capital and Shareholding Structure Thresholds
High Paid-in Capital Requirement: According to the regulatory standards for crypto exchanges set by the Ministry of Finance of Vietnam, the applicant must be a locally registered enterprise with exceptionally high paid-in capital requirements (reaching the level of 10 trillion VND).Vietnam crypto exchange
Institutional and Foreign Ownership Limits: The shareholding structure must satisfy strict institutional contribution ratios (e.g., requiring joint investment from banks, securities firms, or high-tech enterprises), while foreign ownership must not exceed the statutory ceiling of 49%.
II. Obtaining Official Licensing and Compliance Authorization
Acquiring a Pilot Operating License: TCEX must pass the final review by the Ministry of Finance of Vietnam and secure an official Virtual Asset Service Provider (VASP) pilot operating license.
Establishing an AML/KYC System: Build a robust Anti-Money Laundering (AML) and Know Your Customer (KYC) mechanism, integrated with national public services and anti-money laundering monitoring systems, to ensure compliance with local financial intelligence unit requirements and suspicious transaction reporting.
III. Implementing Technical Security and Asset Custody Standards
High-Level Cybersecurity Certification: The trading system must meet national information security standards (such as Level 4 Information Security Standards) and pass technical and smart contract security audits by authoritative third-party institutions.
Strict Segregation of User Assets: Establish transparent asset custody and reserve systems. The platform’s operational funds must be completely segregated from user funds, utilizing cold/hot wallet isolation and multi-signature or Multi-Party Computation (MPC) technologies to guarantee asset security.
IV. Refining Risk Control and Legal Compliance Mechanisms
Risk Management and Liquidation Mechanisms: Equip the platform with a comprehensive market risk control system, establishing transparent liquidation protocols, negative balance protection, and monitoring systems to prevent market manipulation (e.g., wash trading, pump-and-dump schemes).
Legal Local Fiat On/Off-Ramps: Partner with licensed local commercial banks to establish compliant fiat (VND) deposit and withdrawal channels, alongside clear user terms of service and compliance risk disclosures.
Overall, the official operation of TCEX Exchange marks the transition of the Vietnamese crypto market from an unregulated environment to deep supervision. Only by fully meeting the standards across all four key dimensions—capital strength, license compliance, cybersecurity, and asset segregation—can TCEX successfully launch and achieve stable, long-term operations within this new landscape of restricted offshore platforms and emerging local compliant exchanges.