The Ministry of Finance of Vietnam has released a draft decree proposing fines for individuals and businesses using unlicensed cryptocurrency exchanges, marking a significant step toward stricter regulation of the digital asset market.
Under the proposal, individuals could face fines of up to 30 million Vietnamese dong (approximately $1,200), while institutions might be penalized with up to 200 million dong (around $7,580). The decree covers a wide range of violations, including unlicensed trading, breaches of foreign ownership rules, dissemination of misleading information, failure to report required data to regulators, offering products to ineligible investors, non-compliance with insurance requirements, and hiding or omitting key disclosures.
Service providers that fail to verify customer identities could be fined between 50 million and 70 million dong, and foreign investors might receive penalties of up to 100 million dong for violations such as improper fund transfers or submitting false transaction reports.
The timing of this proposal is critical, as Vietnam has yet to license any domestic crypto exchanges. According to government statements, no local platform has met the licensing requirements so far. The pilot framework limits approvals to five exchanges, each of which must adhere to strict capital rules and have majority ownership by regulated institutions. The first licenses are expected to be issued in early 2026.
Once approved platforms are operational, trading outside authorized venues could lead to legal action within six months. This affects an estimated 17 million crypto users in Vietnam, most of whom currently rely on offshore platforms like Binance, Bybit, and MEXC, which operate without local licenses. With Vietnam recording nearly $100 billion in annual crypto inflows, a large portion of this activity could soon be subject to penalties under the new system.
The draft decree emphasizes compliance, requiring proper KYC checks, tighter advertising rules, and stronger Anti-Money Laundering controls, all closely aligned with the guidelines of the Financial Action Task Force (FATF). This shift suggests Vietnam is preparing for a regulated crypto economy rather than an outright ban, aiming to channel activity into approved platforms and discourage gray-market trading.
