Vietnam Caps Crypto Exchange Licenses at 5 in Pilot Program

The Vietnamese government’s decision to cap crypto exchange licenses at five represents a measured approach to regulating the digital asset market, despite the country’s prominent position in global crypto adoption. Deputy Finance Minister Nguyen Duc Chi revealed the limitation at a government press conference, noting that the Ministry of Finance is developing detailed regulations covering taxation, accounting policies, and operational standards. The framework requires coordination with multiple agencies including the Ministry of Public Security and the State Bank of Vietnam, with Chi expressing hope to license at least one enterprise before 2026, though he cautioned the timeline depends on business readiness.

This regulatory structure operates under Vietnam’s Digital Technology Industry Law, passed by the National Assembly in June with overwhelming support of 441 votes out of 445 lawmakers present. The legislation, which takes effect next January, makes Vietnam one of the first countries to comprehensively regulate digital assets through dedicated legislation. The pilot program represents a significant step in formalizing Vietnam’s crypto market, which has operated in a regulatory gray area despite the country ranking among the top three globally for crypto adoption according to Chainalysis’s 2025 Global Adoption Index.

Industry experts have voiced strong concerns about the restrictive nature of Vietnam’s pilot program. Vitaliy Shtyrkin, CPO at B2BINPAY, told Decrypt that ‘the entry bar is so high that most potential applicants can’t clear it.’ He characterized the 5-license cap as turning the initiative ‘from a sandbox into a closed compound,’ favoring ‘large financial groups over fintech innovators.’ Shtyrkin warned that Vietnam must ‘lower the barriers and be much more open’ if it hopes to attract crypto liquidity onshore, noting that ‘otherwise, liquidity and innovation will stay offshore, and the country’s pilot will remain a stuck experiment.’

Lionel Iruk, senior advisor to Nav Markets and managing partner at Empire Legal, provided additional context for the absence of early applicants. He explained that ‘the absence of early applicants doesn’t suggest a lack of interest but rather hesitation amid regulatory uncertainty and stringent readiness requirements.’ Iruk added that while ‘capping the pilot at five enterprises is understandable as a risk-management measure, it may limit competition and slow knowledge transfer.’ These concerns emerge against a backdrop of significant regional growth, with APAC crypto transaction volume expanding from $1.4 trillion to $2.36 trillion, highlighting the substantial market opportunity Vietnam risks constraining.

The implementation timeline faces significant hurdles, with Deputy Finance Minister Nguyen Duc Chi acknowledging that the Ministry of Finance has not yet received formal proposals from businesses to participate in the pilot. However, several companies are preparing technical systems and conducting preliminary discussions with ministry officials, suggesting interest exists despite the challenging regulatory environment. The announcement comes less than a month after the government issued a resolution authorizing the pilot implementation of a crypto asset market in Vietnam, indicating rapid movement toward formal regulation.

Vietnam’s cautious approach stands in stark contrast to its position as a crypto adoption leader, creating a tension between market reality and regulatory ambition. The country’s ranking among the top three nations globally for crypto adoption underscores the substantial existing market activity that now faces formalization through this limited licensing framework. As the Ministry of Finance finalizes licensing procedures through coordination with the State Bank of Vietnam and Ministry of Public Security, the success of the pilot program will depend on balancing regulatory oversight with market accessibility, particularly given expert warnings that excessive restrictions could drive innovation and liquidity to offshore jurisdictions.