Vietnam has introduced regulations to control both trading methods and capital flows in its cryptocurrency market, which is set to begin pilot operations. Domestic investors who trade cryptocurrencies without going through licensed service providers approved by the Ministry of Finance may face fines. Additionally, splitting transactions into multiple parts or using anonymity tools could be classified as suspicious money laundering activities, leading to increased confusion among investors.
According to local reports from VnExpress and others on July 23, the Vietnamese government established administrative penalties for violations related to cryptocurrencies in Decree 284/2026, announced on July 16. This decree applies during the pilot operation period outlined in Resolution 05/2025. It allows for fines of up to 20 million dong (approximately $840) for institutions and up to 10 million dong (about $420) for individuals. If an individual violates the regulations in the same manner as an institution, they will be liable for half the amount imposed on the institution.
The most significant change is the limitation on trading channels available to investors. Domestic investors who trade cryptocurrencies without going through a Ministry of Finance-approved service provider may face fines ranging from 30 million to 50 million dong (approximately $1,260 to $2,100).
For transactions involving cryptocurrencies that are only permitted for foreign investors, the penalties are even steeper, ranging from 70 million to 100 million dong. The obligations for service providers have also been strengthened. If a service provider fails to verify the identity of investors when opening accounts, they could face fines of 50 million to 70 million dong. Collecting, storing, exchanging, selling, gifting, or disclosing cryptocurrency-related data and account information without permission could result in fines of 150 million to 200 million dong.
Unlicensed operations and advertising will also face strict penalties. Institutions providing or promoting cryptocurrency services without authorization could be fined between 180 million and 200 million dong. Selling cryptocurrencies to individuals who are not investors or issuing them before meeting conditions, as well as failing to properly disclose investment prospectuses, could also incur fines of 150 million to 200 million dong.
If an issuing entity provides inaccurate or incomplete information to regulatory authorities, service providers, or investors, they will also face penalties, with fines set between 100 million and 150 million dong. Decree 284 will take effect on September 1 and will be enforced during the pilot operation period established by Resolution 05/2025.
Shift Toward Licensed Exchanges and Expanded Money Laundering Criteria
The cryptocurrency regulations are expanding beyond administrative penalties to include anti-money laundering frameworks. On July 14, the Standing Committee of the National Assembly of Vietnam reviewed proposed amendments to the Law on the State Bank of Vietnam, the Anti-Money Laundering Law, and the Law on Credit Institutions. Pham Thi Kim Chi, Governor of the State Bank of Vietnam, reported that the amendments to the Anti-Money Laundering Law will include 'cryptocurrency services' as mandatory reporting subjects and will redefine indicators of suspicious transactions in this sector. The amendments propose 15 indicators to identify suspicious transactions in cryptocurrency trading.
Key indicators include splitting transactions to avoid customer verification or reporting requirements. Repeated deposits and withdrawals shortly after account creation, or transferring assets to countries or regions with high risks of money laundering or terrorist financing without reasonable justification, are also included. Transactions involving frequent conversions of cryptocurrencies to fiat currency under unfavorable price conditions may also be considered suspicious. Transactions where multiple accounts or wallets send assets to the same address or where a single account rapidly distributes assets to multiple wallets are also subject to reporting.
Using cryptocurrencies with enhanced anonymity or mixing services to conceal the source of funds is classified as a suspicious indicator. Transactions linked to wallets or cryptocurrency service providers associated with past fraud, online gambling, extortion, or stolen assets may also be reported. Additionally, using anonymous tools when accessing platforms or delaying or refusing to provide customer identification information will be regulated. Transactions with unregistered or unlicensed cryptocurrency service providers without being able to explain the source of assets are also flagged as suspicious.
The agency responsible for drafting the legislation stated that the amendments aim to align the anti-money laundering system with international standards and reduce legal gaps. The revisions also seek to prepare for evaluations by the Financial Action Task Force. However, during the legislative review process, concerns were raised about the overly broad criteria. Phan Van Mai, Chairman of the Economic and Financial Committee, emphasized the need to clarify the concept of 'cryptocurrency services' and the scope of services subject to reporting obligations. He also called for more specific criteria for identifying suspicious transactions to ensure practical application.
Vietnam's cryptocurrency market has been in a pilot operation since September last year and will continue for five years. Cryptocurrencies refer to digital assets that are authenticated through cryptographic or digital technology during their creation, issuance, storage, and transfer processes. In the pilot market, the sale, issuance, trading, and payment of cryptocurrencies will be conducted in Vietnamese dong. Until a separate tax system is established, transactions involving cryptocurrencies will be taxed similarly to securities. The government will initially allow the establishment of exchanges for a maximum of five companies to control risks and assess impacts before expanding the market.
Investor Concerns
Investors are questioning how the new regulations will be applied in practice. One reader asked whether a Vietnamese worker in the U.S. using the licensed Coinbase platform would be considered as trading on an unlicensed platform under Vietnamese standards.
There were also inquiries about where to find the list of licensed exchanges. Another reader questioned, “How can I know if an exchange has received regulatory approval?” Confusion also arose regarding the range of tradable assets and products. One reader asked, “If a Vietnamese exchange does not support a specific coin, can I trade it on an international exchange?” Another expressed concern about how to proceed if their cryptocurrency is not listed on a licensed exchange.
Additionally, there were criticisms regarding the ambiguity of the transaction-splitting criteria. One reader questioned, “In cryptocurrency trading, it is common to buy a little when prices drop, sell some when they rise, and buy again if prices increase further. Would this also be considered transaction splitting?”
* This article has been translated by AI.
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