Vietnam is one of the countries with the highest rate of cryptocurrency adoption globally, particularly among the younger generation and tech-savvy population. However, from a legal standpoint, cryptocurrency remains a “grey area” — it is not officially recognized as a legal means of payment, yet it is not entirely prohibited either.
For foreign investors and businesses considering expanding crypto-related activities in Vietnam, understanding the current legal framework is essential to ensure compliance and minimize legal risks.
Cryptocurrencies Are Not Recognized as Legal Means of Payment
Vietnamese law makes it clear: the only legal currency for transactions is the Vietnamese dong (VND). This is reinforced by Decree No. 101/2012/ND-CP, which recognizes bank cards and licensed payment tools but excludes any form of cryptocurrency.
So, while locals can hold Bitcoin or Ethereum, using these currencies to buy a cup of coffee or pay rent could lead to legal trouble. In fact, such transactions can result in administrative penalties, reflecting the government’s firm stance on preserving monetary control while allowing room for innovation in digital finance.
You can own it, but operating a crypto business is tricky
Owning cryptocurrency as a form of digital asset or investment is not prohibited. Many Vietnamese retail investors have done just that — trading, holding, or staking on foreign exchanges. However, setting up a business around crypto inside Vietnam is a far more complex matter.
There’s no official regulatory pathway for launching an exchange, offering crypto custody services, or conducting an Initial Coin Offering (ICO). Without a legal foundation, these activities carry significant risk. Enforcement can occur if authorities determine that such ventures impact financial stability or breach existing financial laws. As of now, Vietnam’s regulators are watching closely — but still haven’t issued a comprehensive rulebook.
Fund transfers and AML regulations
Vietnam has also taken strong steps in anti-money laundering (AML) compliance. The updated Law on Anti-Money Laundering, effective from 2023, requires financial institutions to report suspicious activity, including crypto-related transactions.
For foreign-invested entities or individuals looking to move capital into or out of Vietnam, this means that Know-Your-Customer (KYC) protocols must be stringent. Legal consultation is advised before engaging in any crypto-related capital structuring. Using domestic bank accounts to process crypto funds without clear origin could draw regulatory attention — or worse.
Conclusion:
Cryptocurrency regulation in Vietnam is entering a formative stage. Although there is no comprehensive legal framework yet, the country’s growing market potential and the government’s open attitude present valuable opportunities for early-stage investors.
At Hide & Seek, we offer legal consulting, capital structuring, and risk management services tailored for international investors interested in Vietnam’s blockchain, digital asset, and fintech landscape. Contact us today for the latest legal updates and secure market entry strategies.