Vietnam has officially begun a five-year pilot program for a crypto asset market from September 9, under a Government Resolution signed by Deputy Prime Minister Ho Duc Phoc.

The move marks a cautious yet progressive step into the regulated cryptocurrency space, aiming to establish strict oversight while protecting the rights and interests of both domestic and foreign stakeholders.

Under the resolution, all issuance, trading, and payment activities must be conducted in Vietnamese currency (VND).

Only enterprises licensed by the Ministry of Finance may operate digital asset exchanges, issuance platforms, or related services. Compliance with anti-money laundering, counter-terrorism financing, cybersecurity, and data protection laws is mandatory.

The framework stipulates that only Vietnamese enterprises may issue digital assets, which must be backed by real underlying assets, excluding securities and fiat currencies. These assets can only be offered to and traded among foreign investors through licensed service providers, with issuers required to publish a prospectus at least 15 days before any offering.

Service providers must hold minimum capital of VND10 trillion ($379 million), with at least 65% contributed by institutional investors. Foreign ownership of any crypto asset is capped at 49%.

Applicants must also meet strict standards for governance, risk management, IT systems, and staffing, including experienced executives, certified securities professionals, and cybersecurity specialists.