Vietnam has approved a five-year pilot for cryptocurrency trading, opening a tightly controlled gateway into a market that has grown rapidly without formal rules.
The resolution allows only Vietnamese companies to operate platforms. Additionally, it requires all issuance, trading and payments of crypto assets to be settled in the local dong, according to a government announcement Tuesday.
Only Vietnamese firms can issue tokens, and they may sell them solely to foreign investors.
Vietnam Sets Tough Entry Bar For Crypto Exchanges
The rules set a high bar for participation. To begin with, any exchange provider must hold at least 10 trillion dong, about US$379m, in capital. In addition, institutional investors must contribute no less than 65%. Finally, foreign ownership in trading platforms is capped at 49%.
Last year, Vietnam ranked fifth in a global adoption index by Chainalysis. An estimated 17m Vietnamese own digital assets, with their combined holdings valued at more than $100b.
The pilot will open the door for both domestic holders and foreign investors. Vietnamese who already own crypto will be able to open accounts on licensed exchanges.
Once the first license is issued, investors will have six months to move to approved platforms. After that, any trading by Vietnamese on unlicensed venues will be considered illegal. However, the government has not yet specified the penalties.
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