Vietnam’s Ministry of Finance has released a draft amendment introducing administrative sanctions for violations in the crypto asset sector, including fines for both investors and service providers, Tuoi Tre has reported.
Key provisions include:
- Investors who do not open an account and transfer their crypto assets to licensed Vietnamese organisations may face fines of VND 100–200 million (US$3,850–US$7,700).
- Service providers failing to verify investor identities may be fined VND 300,000–500,000 (US$11.50–US$19.20).
- Fines of up to VND 1 billion (US$38,460) apply to organisations that:
- Provide misleading advertising or fail to separate client and company assets.
- Do not supervise crypto trading or fail to ensure compliant participants.
- Severe violations, such as operating without a licence or failing IT security standards, may incur fines of VND 1.5–2 billion (US$57,690–US$76,920).
- Market manipulation by investors or firms can be fined VND 1.5–2 billion, with service providers potentially suspended for 3 to 5 months.
Vietnam’s proposed requirement for crypto investors to transfer their digital assets to licensed domestic organisations is unusually strict and raises significant concerns.
While the intent is to improve oversight and prevent illicit activity, this approach breaks with global norms. Most countries regulate crypto by licensing exchanges, enforcing anti-money laundering (AML) rules, and requiring know-your-customer (KYC) compliance—not by forcing users to give up control of their private wallets or mandating asset transfers to state-approved custodians.
This policy risks being both unenforceable and counterproductive. It could drive crypto activity underground or offshore, reduce transparency, and deter investment. Moreover, Vietnam currently lacks a clear legal framework or infrastructure to support such a sweeping obligation. A more manageable path would be to focus on regulating exchanges, requiring service provider licensing, and introducing incentives for voluntary compliance rather than attempting to control all private crypto holdings.
See also: Why Cryptocurrency in Vietnam Is So Popular: Unpacked