Vietnam Moves to Ban Foreign Exchanges, Onshoring $200B Market
Vietnam is drafting new regulations to prohibit its citizens from trading on overseas cryptocurrency platforms, including major exchanges like Binance, OKX, and Bybit. The move is a significant step to bring the country's burgeoning digital asset activity, which saw over $200 billion in transactions in the 12 months through June 2025, under domestic control. This positions Vietnam, which ranks fourth on Chainalysis's global crypto adoption index, to redirect massive liquidity away from global markets and into a new, state-supervised ecosystem.
Regulators are expected to provide a six-month transition period after issuing the first local licenses, which could happen as early as March 2026. After this period, all crypto trading must migrate to approved domestic exchanges. The policy is part of a five-year pilot program designed to enhance government oversight, reduce fraud, and capture tax revenue from the highly active market.
New Licenses Demand $400M Capital, Favor Local Institutions
The proposed licensing regime creates high barriers to entry, signaling a clear preference for domestic control and well-capitalized players. Applicants must demonstrate a minimum charter capital of 10 trillion Vietnamese dong (approximately $400 million) and limit foreign ownership to a maximum of 49%. These stringent requirements are designed to attract established financial institutions and large corporations.
An initial screening has already seen five firms pass a qualification round. These include affiliates of major banks like Techcombank, VPBank, and LPBank, alongside VIX Securities and the conglomerate Sun Group. The involvement of these entities indicates that Vietnam's licensed crypto market will be dominated by established domestic players rather than agile crypto-native startups.
Regulation Aligns with Broader Digital Economy Strategy
This regulatory shift follows a critical legal change that laid the groundwork for a structured market. On January 1, 2026, the Law on Digital Technology Industry came into force, formally recognizing digital assets as legal property under civil law for the first time. While crypto is still not legal tender for payments, this change enabled the government to create a framework for taxation and licensing.
The government's approach appears twofold: control trading activity while simultaneously fostering blockchain innovation. While restricting access to foreign platforms, officials in cities like Da Nang are actively partnering with global organizations to host Web3 summits, aiming to become a technology hub. This strategy suggests Vietnam seeks to capture the economic benefits of blockchain technology while managing the financial risks and capital outflows associated with unregulated crypto trading.
Vietnam is not waiting for the Web3 revolution, we are leading it. Our government's partnership... reflects our commitment to making Da Nang the innovation and technology capital of Southeast Asia.
— Ho Quang Buu, Vice Chairman, People's Committee of Da Nang City
