In the latest move to strengthen management and transparency in the digital asset market, a proposal has been put forward to significantly increase administrative penalties for individuals and organizations participating in cryptocurrency trading on exchanges not licensed to operate in Vietnam.
This is not just an adjustment in penalties, but a strong signal that regulatory agencies are determined to "shelter" the flow of crypto into a regulated, supervised, and legally protected playing field.
Nature and Objectives of the Proposal
This proposal directly targets trading on international exchanges that lack legal entity status or operating licenses in Vietnam – where the majority of Vietnamese investors operate. The main objectives of increasing penalties are:
To create a deterrent and minimize risks for investors: By increasing penalties, regulators want to warn users about the potential risks of trading on "outside the law" platforms, where they are not legally protected in case of disputes, fraud, or exchange failures.
To promote the development of domestic exchanges: This is a strategic move. As trading on unlicensed exchanges becomes riskier and more expensive, users will be motivated to switch to licensed domestic exchanges (in the future). This will help create a vibrant, easily regulated, and tax-collecting domestic market.
Enhanced State Management Efficiency: Concentrating users on licensed exchanges will make it easier for authorities to monitor money flows, prevent money laundering (AML), combat counter-terrorism financing (CTF), and effectively enforce tax policies.
Potential Impact on the Vietnamese Crypto Community
If this proposal is approved and implemented, it will create significant changes in investor behavior:
Large-scale shift of funds: There will be a wave of users and assets moving from major large international exchanges (Binanace)to licensed domestic platforms.
Increased demand for decentralized (DeFi) solutions: A segment of investors seeking anonymity and to avoid regulation may increasingly turn to decentralized exchanges (DEXs) and self-custody solutions. However, this requires users to have higher technical knowledge.
Challenges for international exchanges: International exchanges wanting to retain Vietnamese users may have to expedite the licensing process and establish legal entities in Vietnam to comply with regulations.
Conclusion: A necessary step in the legal roadmap
The proposed increase in penalties is a logical and necessary step in the roadmap to perfecting the legal framework for crypto assets in Vietnam, which has already begun with the imposition of a 0.1% tax. It shows a long-term vision of the regulators: not prohibition, but strict regulation. Although it may cause initial disruption and difficulties for the community, in the long run, creating a transparent, safe, and legally recognized playing field will be the foundation for the sustainable development of the entire market.
