Vietnam has approved a five-year pilot project for encrypted transactions, limiting local companies to settle in Vietnamese dong.

The Vietnamese government has officially approved a five-year pilot project for cryptocurrency trading, aiming to regulate and utilize the cryptocurrency market in the country, which is currently experiencing rapid growth without a clear legal framework. According to the resolution, during the pilot period, only local Vietnamese companies are allowed to provide cryptocurrency trading platforms, and all related issuance, trading, and payment activities must be settled in Vietnamese Dong. The issuers of cryptocurrencies are also restricted to Vietnamese companies, and the issued assets must be backed by real estate (excluding securities and legal currency), targeting only foreign investors. In terms of entry requirements for exchange providers, the resolution stipulates that their registered capital must not be less than 100 trillion Vietnamese Dong (approximately $3.79 billion), with at least 65% of the capital contributed by institutional investors - including commercial banks, securities companies, fund managers, among others from at least two reputable institutions, which collectively must hold more than 35% of the shares of the exchange provider. Regarding the ownership structure, foreign ownership must not exceed 49%, while institutions and individual investors can only invest in a single exchange provider. Account opening is limited to Vietnamese citizens and foreign investors who hold cryptocurrencies, and they can only open trading accounts on licensed platforms.