Vietnam sets steep crypto fines to force traders onto licensed exchanges
Vietnam is penalising unlicensed crypto trading at rates comparable to drunk driving to funnel its $200 billion digital asset market into a heavily capitalised domestic exchange system expected to launch this quarter.
Vietnam will penalise unlicensed cryptocurrency trading with fines comparable to drunk-driving offences as it prepares to bring its massive digital asset market under state control. Under a decree issued on July 16 and taking effect on Sept. 1, individuals trading outside government-approved platforms face penalties ranging from $1,140 to $1,900. Companies providing or advertising crypto services without a licence face much steeper fines of up to $7,600.
The new rules are designed to force traders off major overseas platforms like Binance, OKX and Bybit. By penalising the use of unapproved exchanges, Hanoi aims to capture and regulate a market where locals moved more than $200 billion in digital assets in the 12 months through June 2025. That volume made Vietnam the fourth-largest market globally in Chainalysis’ 2025 Crypto Adoption Index, with activity extending beyond trading into remittances and savings.
However, a licensing bottleneck could complicate early enforcement. The Ministry of Finance has not yet approved any exchanges, making it difficult to punish traders for using unlicensed platforms before a legal domestic alternative actually exists. Five applicants are currently under review: VIXEX, Vietnam Digital Asset Corporation, CAEX, SCEX and TCEX. Deputy Finance Minister Nguyễn Đức Chi has indicated the first regulated market activity could begin in the third quarter.
The licensing framework itself severely restricts who can participate. Applicants must hold at least VND 10 trillion ($380 million) in charter capital and face a 49% cap on foreign ownership. These capital requirements effectively lock out foreign exchanges and smaller domestic startups, leaving the field open to well-capitalised financial institutions. Two of the leading applicants, CAEX and TCEX, are backed by major domestic lenders VPBank and Techcombank.
Beyond trading restrictions, the decree imposes strict data and identity controls. Licensed providers face fines of up to $2,650 for failing to verify customer identities and up to $7,600 for unlawfully collecting or publishing user data. The latter provision targets a sharp rise in physical extortion crimes, where criminals use leaked financial information to target crypto holders.
For investors and market professionals, the decree marks a definitive end to Vietnam’s crypto gray market. The transition will likely consolidate trading volume into a small handful of bank-affiliated exchanges, fundamentally altering the structure of one of the world's most active retail crypto economies.
