Vietnam Crypto Pilot Faces Staggering Hurdles: Zero Applicants Amidst Stringent Rules
The eagerly anticipated launch of Vietnam’s five-year Vietnam crypto pilot program has hit an unexpected snag. Despite a growing global appetite for regulated digital asset markets, the nation’s Ministry of Finance has confirmed a complete absence of applications from companies eager to participate. This surprising lack of interest underscores significant challenges within the proposed framework, raising questions about Vietnam’s approach to digital asset trading.
Unpacking Vietnam’s Stringent Crypto Capital Requirements
At a recent press briefing, Deputy Minister of Finance Nguyen Duc Chi disclosed that the ministry has yet to receive any proposals from enterprises for the pilot program. He indicated a maximum of five participants would be allowed, with an ambitious goal to license the first eligible company before 2026. However, progress hinges entirely on companies meeting the demanding conditions.
The core issue lies in the exceptionally high crypto capital requirements. Licensed crypto asset service providers (CASPs) must maintain a minimum capital of at least 10 trillion dong, which translates to approximately $379 million. To put this in perspective, this figure rivals the capital demands placed on full commercial banks, a stark contrast to typical financial technology startups. This substantial barrier effectively deters many potential innovators and established crypto firms.
Global Comparison: Vietnam vs. Regional Competitors
Many other Southeast Asian jurisdictions present a far more viable landscape for crypto companies. For instance, countries like Singapore, Hong Kong, and Japan offer non-bank pathways with significantly lighter capital requirements, typically ranging from $1 million to $5 million. This difference is monumental, illustrating why companies might opt for more accommodating regulatory environments. A quick comparison highlights the disparity:
- Vietnam: ~$379 million
- Singapore: ~$1-5 million
- Hong Kong: ~$1-5 million
- Japan: ~$1-5 million
These lower thresholds in competitor markets enable a broader range of companies, from startups to established players, to enter and innovate. Consequently, Vietnam’s stringent approach risks isolating its nascent digital asset market from global trends and investment.
Restrictions on Stablecoins and Tokenized Securities
Beyond the hefty capital demands, Vietnam’s pilot program imposes strict limitations on the types of crypto products that can be offered. Specifically, the issuance of crypto assets backed by fiat currencies or securities is restricted. This critical policy decision essentially rules out most major stablecoins, such as Tether (USDT) and USD Coin (USDC). Furthermore, it excludes the rapidly expanding category of tokenized securities and money-market funds.
This narrow product scope significantly curtails the potential appeal of Vietnam’s crypto market to both retail and institutional investors. Stablecoins are foundational to the broader crypto ecosystem, providing stability, liquidity, and a reliable medium of exchange. Their absence creates a less attractive and less functional environment for digital asset trading.
The Booming Global Demand for Stablecoins and RWAs
These restrictions clash sharply with current global trends in the cryptocurrency space. Fiat-backed stablecoins and tokenized treasuries are among the fastest-growing segments. Recent data indicates that the global stablecoin supply has surpassed $300 billion, with transfers exceeding $15.6 trillion in the third quarter of 2025 alone. This quarter saw inflows totaling $46 billion, primarily driven by Tether’s USDT, Circle’s USDC, and Ethena’s synthetic stablecoin USDe.
Simultaneously, tokenized treasuries, often referred to as Real World Assets (RWAs), have seen remarkable growth. Data from RWA.xyz shows that tokenized treasuries climbed above $8 billion. Leading this charge are major institutional offerings like BlackRock’s BUIDL fund and Franklin Templeton’s BENJI tokens. These products attract institutions seeking yield, efficient collateral, and faster settlement times, showcasing a clear market demand that Vietnam’s pilot currently ignores.
Implications for Vietnam’s Digital Asset Trading Ambitions
Vietnam’s current regulatory stance on stablecoin regulation and tokenized assets puts it at odds with global industry development. By limiting the scope of permissible digital assets and imposing prohibitive capital requirements, the country risks stifling innovation and deterring legitimate businesses. While the intention might be to ensure market stability and investor protection, the current framework appears to be overly cautious, inadvertently hindering growth.
For a nation aspiring to be a technological and economic leader in Southeast Asia, fostering a dynamic digital economy is crucial. However, the existing pilot program’s structure makes it challenging for Vietnam to attract top-tier crypto talent and investment. Companies seeking to engage in digital asset trading will naturally gravitate towards jurisdictions that offer clearer, more practical regulatory pathways and a wider range of acceptable products.
Potential Pathways for Future Crypto Pilot Success
To ensure the success of its Vietnam crypto pilot, the Ministry of Finance might consider several adjustments:
- Revisiting Capital Requirements: A tiered capital requirement system, similar to those for different types of financial licenses, could make the pilot more accessible to a broader range of companies.
- Re-evaluating Asset Restrictions: A more nuanced approach to stablecoin regulation, potentially allowing fiat-backed stablecoins under strict oversight, could significantly boost market interest and liquidity.
- Phased Implementation: Starting with a smaller, more manageable scope of assets and gradually expanding as regulatory expertise grows might be a more effective strategy.
- Engagement with Industry: Regular dialogue with leading crypto firms and blockchain experts could provide valuable insights into creating a balanced and effective regulatory framework.
Without such adaptations, the pilot program, despite its good intentions, may continue to see a lack of participation. This could result in Vietnam missing out on the economic benefits and technological advancements that a thriving digital asset ecosystem can offer.
Conclusion: Navigating the Future of Digital Asset Trading
The absence of applicants for Vietnam’s crypto pilot program sends a clear message. While the government aims to establish a regulated environment for digital asset trading, the current high barriers and restrictive policies are proving counterproductive. The global market demonstrates a robust demand for stablecoins and tokenized securities, which Vietnam’s framework currently excludes.
Moving forward, a more flexible and industry-aligned approach will be essential. By adjusting its crypto capital requirements and reconsidering its stance on stablecoin regulation and tokenized securities, Vietnam can position itself to harness the immense potential of the digital asset economy. This strategic shift could transform the pilot from an empty initiative into a vibrant hub for blockchain innovation and investment, aligning Vietnam with the rapidly evolving global financial landscape.
