Vietnam crypto market cools as MoF, SBV eye pilot licenses

Vietnam’s crypto market surged on a retail wave of gaming, DeFi, and offshore exchange access, then hit a wall as speculation unwound, scams proliferated, and rules tightened. The transition now underway is shifting activity from a legal gray zone toward a licensed, onshore model that tests enforcement capacity as much as policy design.

Why Vietnam’s crypto boom went bust: retail frenzy, scams, regulation gaps

According to Tiger Research’s 2025 market review, Vietnam’s crypto market has been overwhelmingly retail-driven, with institutions largely on the sidelines pending regulatory clarity. Retail participation clustered around GameFi and DeFi, amplified by social and gaming communities and easy access to offshore platforms.

Based on analysis by AInvest, the ecosystem’s weak points were systemic: thousands of crypto scams in Vietnam, patchy oversight, and inconsistent enforcement created a high-risk environment, particularly for foreign participants seeking regulatory certainty. The report frames Vietnam as opportunity-rich but vulnerable to fraud cycles and trust shocks.

Drawing on blockchain forensics, Chainalysis reported that crypto transactions linked to suspected trafficking operations rose 85% in 2025 to about US$260 million in Vietnam, underscoring cross-border crime risks that are difficult to police quickly. The figures illustrate how rapid retail adoption, without aligned safeguards, can invite illicit activity that erodes confidence.

Vietnam crypto market now: legal pilot and oversight shift

As reported by Cointelegraph, the National Assembly passed the Law on the Digital Technology Industry in June 2025, effective January 1, 2026, recognizing “crypto assets” and “virtual assets,” introducing licensing for crypto businesses, and adding KYC/AML obligations aligned with international norms such as the FATF. The law moves the Vietnam crypto regulation agenda from informal guidance to a codified framework.

Through Resolution No. 05/NQ-CP (2025), a five-year pilot program has been opened for domestic crypto asset markets, as summarized on LinkedIn. Only a limited number of exchange operators will be licensed under strict capitalization, ownership, and foreign participation rules, and under the Crypto Pilot Programme only Vietnamese‑incorporated companies may offer or issue crypto assets.

Industry groups argue that legal clarity must be matched by meaningful consumer protection and enforcement to reduce fraud exposure. “We need a clear legal framework for digital assets to spur sustainable growth, protect consumers, and curb fraud,” said Phan Đức Trung, Chairman of the Vietnam Blockchain Association.

Together, the law and pilot scheme aim to channel activity onshore under licensing, identity checks, and reporting, while preserving room for innovation. Their effectiveness will hinge on coordinated supervision and the ability to investigate and prosecute complex, cross-border cases.

Immediate impact for users and startups: risk, licensing, KYC/AML

For retail users, risk remains elevated during the transition. As reported by Vietnam News, Maybank Investment Bank’s Phan Dũng Khánh cautioned that with digital assets not yet fully recognized and most trading occurring on foreign exchanges, investors are effectively responsible for their own risks, including fraud exposure.

For startups and virtual asset service providers, the pilot introduces a formal path to operate legally but with tighter guardrails: domestic incorporation, licensing, and controls over capitalization, ownership, and foreign participation, plus KYC/AML duties introduced under the new law. Firms outside the pilot’s perimeter will likely face higher scrutiny or be excluded from regulated channels.

KYC/AML onboarding and transaction monitoring could add friction in the near term but may improve traceability and reduce scam incidence over time. The pace at which enforcement closes the gap with on-paper rules will shape whether institutional capital follows retail into the regulated market.

At the time of this writing, Axie Infinity (AXS) trades around $1.47 with Neutral sentiment, 24.80% volatility, an RSI(14) near 46.23, and 15 green days in the past 30 sessions. These snapshot metrics offer context for a widely followed token in Vietnam’s gaming community without implying any investment view.

Vietnam crypto regulation: roles of MoF and State Bank of Vietnam

According to Vemanti, the new framework assigns the Ministry of Finance authority over tokenized financial assets and market oversight, while the State Bank of Vietnam is responsible for legal digital currencies. This division clarifies who regulates market conduct and who anchors monetary and payments-related questions.

In practice, that split suggests the MoF will lead licensing and investor-protection rules for market participants, and the SBV will handle currency issuance and payment-system integrity. Effective inter-agency coordination will be essential to translate statutory intent into day-to-day supervision, audits, and enforcement.