Vietnam’s New Crypto Asset Framework: Practical Issues For Cross-Border Crypto Asset Service Providers

For much of the past decade, Vietnam maintained a cautious stance toward crypto assets. While ownership and trading were not expressly prohibited, crypto assets were not recognized as legal tender or a regulated asset class, creating a paradox: Vietnam ranked among the world’s most active crypto markets, yet businesses lacked a clear legal framework governing the issuance, trading, and custody of crypto assets.

That position is now changing. Driven by growing domestic participation, international regulatory developments, and a broader digital economy agenda, Vietnam has established a pilot framework and controlled sandbox mechanisms for crypto assets, signaling its intention to bring crypto asset activities within a regulated environment. (Controlled sandbox mechanisms are regulatory frameworks that permit limited testing of cryptocurrency-related products and services under defined conditions and regulatory oversight.) This is a welcome signal for foreign exchanges, custodians,