Vietnam initiates a five-year crypto trading pilot that allows controlled exchanges, nationwide regulation and safe digital asset uptake in the expanding market.

Vietnam has sanctioned a five-year pilot on crypto trading, the first timid move into the fast-growing crypto market. The program permits Vietnamese companies to run a trading platform alone and will need all issuance, trading, and payment of crypto assets to be settled in local dong.

The government has established rigid requirements of participation. The exchange providers are required to have at least 10 trillion dong in capital (approximately US $379 million), and the institutional investors have at least 65 percent. Foreign ownership is limited to 49%. Currently held crypto in Vietnam will have an opportunity to open the accounts in licensed exchanges, and trading in unlicensed platforms will be a criminal offense after the first licenses are released.

This pilot expands upon the Law on Digital Technology Industry and the deployment of NDAChain, an authorized Layer 1 blockchain in support of the national digital infrastructure of the country. Authorities strive to strike the right balance between novelty and control to make sure that the expanding cryptocurrency market functions within the framework of evident regulations and achieves the minimal risks.

Vietnam was ranked as fifth in the world in terms of crypto adoption last year, as 17 million citizens possessed digital assets worth more than 100 billion. His pilot is to give information about the behavior in the market and guide future regulatory decisions.

Regulatory control and a systematic structure allow Vietnam to become a dynamic market to adopt crypto within the Asian market, drawing both local and foreign investors interested in joining the digital economy of the country.

In the coming five years, it is anticipated that crypto will further enter Vietnam's financial landscape and offer a regulated yet expansion-driven environment in which digital assets can be traded.