Crypto in Vietnam

Vietnam's cryptocurrency regulatory framework remains deliberately ambiguous. The State Bank of Vietnam (SBV) issued Decision No. 128/2020/QD-TTg on October 11, 2020, which explicitly prohibits the issuance, supply, and use of Bitcoin and other cryptocurrencies as a means of payment. This builds upon earlier SBV directives from 2017 and 2018. However, the government has not classified crypto assets as securities, commodities, or property under existing law, creating a legal gray zone. The Ministry of Finance (MoF) is tasked with studying and proposing a regulatory framework, while the SBV maintains authority over payment systems. In 2023, the MoF established a research group to draft a virtual asset management decree, signaling a move from blanket prohibition toward potential regulated recognition, though no draft has been published. The lack of a formal legal definition leaves trading and holding in a state of tolerated but unprotected activity.

Vietnam lacks a specific tax framework for cryptocurrency transactions. The General Department of Taxation has not issued formal guidance, creating significant uncertainty for investors and businesses. Capital gains from crypto trading could theoretically fall under personal income tax (PIT), which has a progressive rate from 5% to 35%, or corporate income tax (CIT) at a standard 20% rate. However, enforcement is virtually non-existent due to the absence of reporting mechanisms and clear classification. The government loses an estimated $200-300 million annually in uncollected tax revenue from the crypto sector, according to 2023 parliamentary discussions. A proposed amendment to the Tax Administration Law, expected by 2025, may introduce reporting obligations for virtual asset transactions, but specific rates for crypto capital gains or VAT treatment remain undefined.

Vietnam demonstrates one of the highest rates of grassroots cryptocurrency adoption globally despite regulatory uncertainty. Chainalysis's 2023 Global Crypto Adoption Index ranked Vietnam first for the second consecutive year. An estimated 4.2 million Vietnamese, or over 4% of the population, held or traded crypto assets in 2023. Retail adoption is driven by peer-to-peer (P2P) trading, gaming, and remittances. The Axie Infinity play-to-earn game, developed by Vietnamese studio Sky Mavis, catalyzed mass adoption in 2021, with over 2 million Vietnamese users at its peak. Institutional activity remains minimal; no licensed Vietnamese banks offer crypto services. However, venture capital investment in domestic blockchain startups exceeded $100 million in 2022-2023. Major exchanges like Binance and Coinbase maintain significant user bases through informal P2P networks.