Vietnam crypto market set to break new ground, fintech exec says

This regulatory shift marks the beginning of a major market restructure, setting the stage for a more transparent, mature, and institutionalized digital asset ecosystem, according to Nghiem Minh Hoang, a fintech expert at the Vietnam Blockchain Association.

- Vietnam’s crypto market has boomed for years, but most trading happened off the grid. What caused this?

- Vietnam’s digital asset scene is far from new. It has been expanding for over a decade. This growth reflects a global technological shift combined with strong local demand for alternative investment channels.

Nghiem Minh Hoang, a fintech expert at the Vietnam Blockchain Association. Photo by Trong Dat

In the absence of clear ground rules, however, the bulk of activity migrated to overseas exchanges or peer-to-peer over-the-counter (OTC) networks. Data from blockchain analytics firm Chainalysis shows that around 17 million Vietnamese currently hold crypto assets, with capital flows between June 2024 and June 2025 being around US$200 billion. That volume demonstrates genuine, deep-rooted market demand.

I’ve heard from many OTC traders who frequently voice a willingness to pay taxes, comply with state oversight, and operate legally. They simply want clear regulatory ground rules.

Operating in a gray zone leaves traders without legal recourse, exposed to fraud, counterparty risk, and anti-money laundering liabilities with little ability to verify who they are dealing with.

- Will licensing crypto exchanges eradicate the gray market?

- The government's approach has fundamentally shifted. Where Vietnam once maintained a cautious distance, the new Digital Technology Industry Law officially recognizes digital assets as legally protected property. This signals a willingness to accept calculated risks in order to bring the sector under formal state management.

Bitcoin symbol coin. Photo by Bao Lam

Following the law, the government issued Resolution 05 to pilot licensed crypto exchanges, setting a target of having the country’s first regulated trading platforms operating by 2026.

Licensing exchanges is a crucial step toward curbing illegal trading, but it is not a silver bullet. A functioning crypto market requires far more than trading platforms—it demands comprehensive rules for anti-money laundering, mandatory identity verification, asset custody, token issuance, cash flow monitoring, operational licensing, and technical standards.

The goal is not just to approve a few exchanges, but to build a complete legal ecosystem where all market participants can operate safely and transparently.

- Once brought into a formal framework, who will feel the biggest impact?

- The biggest transformation won't actually be felt by retail investors. Historically, crypto was effortless to access: with just a smartphone, anyone could set up an account on international platforms and start trading.

Under a regulated framework, users will face mandatory identity verification and stricter portfolio controls, but I don't expect retail participation to drop. With approximately 17 million active user accounts today, the retail footprint will likely remain steady, if not expand slightly.

The real shift will happen among corporations and institutional investors. Previously, despite recognizing the market's potential, institutional capital remained on the sidelines due to legal uncertainties. While institutions are fewer in number, the financial weight they bring will far outweigh retail capital. That will trigger a fundamental structural evolution in the market.

- Vietnamese blockchain startups previously set up holding companies abroad. Can recent policy reforms reverse that trend?

- This is one of the most promising signals we are seeing. Vietnam has produced world-class blockchain startups, yet the lack of a local legal framework forced many founders to incorporate in Singapore or other international jurisdictions. Consequently, the economic value they created never flowed directly back into Vietnam’s economy.

With the passage of the Digital Technology Industry Law and Resolution 05, many founders are eager to return, set up local operations, and build their businesses at home.

Naturally, high expectations come with lingering questions. Legislation is only the first step; detailed implementing regulations are still being drafted. I expect that clear decrees and circulars need to be issued swiftly to provide legal certainty for businesses and unlock domestic and foreign capital.

- How do you envision Vietnam’s digital asset market evolving over the next five years?

- I view the 2026–2027 period as an intense phase of structural realignment. Restructuring is rarely seamless—new challenges will arise and require constant fine-tuning. But once the market navigates that transition, it will emerge significantly more mature across its underlying technology, operating models, investor quality, and institutional ecosystem.

In the early stages, major conglomerates and financial institutions may test the waters cautiously. As the legal framework solidifies and operations become transparent, institutional capital will enter in earnest.

This trajectory mirrors international trends. Markets are typically led by startups and tech pioneers first, eventually drawing in established financial institutions once regulatory guardrails take shape.

Vietnam is moving down that exact path.

The defining change will not just be the scale of the market, but the overall quality of capital and the maturity of the ecosystem.