Vietnam rolls out 5-year crypto-pilot program

In an attempt to acquaint foreign investors and the local securities market with cryptocurrency, Vietnam has rolled out a 5-year crypto test program on Tuesday, which will see the deployment of exchanges along with trading activity under controlled conditions, as per an update by the government’s official newspaper.  The directive has been put into effect from Tuesday.

The Ministry of Finance is to give all relevant licenses. Tax policies for digital assets will be the same as for traditional securities unless there is a specific framework put in place. 

Vietnam’s digital asset firms will only sell to foreign investors

For now, the exchanges operating under the pilot program will only be able to sell to foreign investors. The implementation will cover digital asset issuers, digital asset service providers, organizations investing in the market, both foreign and domestic. 

The directive states that all activity, including issuance, trading, and payment of digital assets, must be done in the form of dong, Vietnam’s national currency. 

Digital asset issuers must be listed as Vietnamese enterprises, either in the form of a limited liability firm or a stock company. 

Firms interested in trading in cryptocurrencies must have capital on hand of 10,000 billion Vietnamese Dong and 2 years of experience as a profitable business before applying for a license. 

After 5 years, the pilot program will continue to operate under the same framework but can be replaced or amended. 

The transition marks the country’s move from what was initially an unclear stance and framework to a more regulated set of rules.