Vietnam's Crypto Pilot Program Faces Slow Start

Vietnam's Crypto Pilot Program: Still Waiting for Takeoff

Vietnam's ambitious plan to regulate and formalize its booming cryptocurrency market is facing a slight hurdle: a lack of formal applications.

Despite the government's efforts to establish a five-year pilot program for digital asset trading and a supportive legal framework, the Ministry of Finance has yet to receive any proposals from companies eager to participate.

Key Developments:

• No Applications Received: The Ministry of Finance confirmed that no formal applications for the digital asset trading pilot have been submitted.
• Interest is There: Several companies are reportedly preparing to enter the market, including registering new business lines.
• Limited Participants: The government is capping the pilot program to a maximum of five participants.
• Timeline: The goal is to launch the pilot before 2026, contingent on companies meeting the necessary requirements. The government is looking to speed things up.
• Legislative Backing: The National Assembly legalized digital assets earlier this year under the Law on Digital Technology Industry.
• Onshore Focus: The pilot aims to bring Vietnam's significant crypto trading activity (estimated at $100 billion annually) onto regulated, taxable domestic platforms.

Key Takeaways:

• The formal recognition of digital assets is viewed as a positive step towards boosting investor confidence.
• Bringing trading onshore could address AML concerns, potentially removing Vietnam from the Financial Action Task Force's "gray list".
• The success of the pilot program hinges on companies taking the leap and submitting their applications.
• The move reflects Vietnam's recognition of the growing importance of digital assets and its desire to integrate them into the financial system in a safe and regulated manner.

The government emphasizes that it is actively working to expedite the licensing process and is eager to see the first eligible enterprises begin operations. The coming months will be critical in determining the success of this initiative.