Crypto in Vietnam

Vietnam has not recognized cryptocurrency as legal tender, and its regulatory framework remains fragmented. The State Bank of Vietnam (SBV) prohibits credit institutions from providing crypto-related services under Directive 02/CT-NHNN (2018), while the Ministry of Finance (MOF) has been tasked with drafting a legal framework. In 2021, the Prime Minister issued Decision 1255/QD-TTg approving a project to develop a legal framework for digital assets, but implementation has been slow. The MOF circulated a draft decree in 2023 that would classify crypto assets as property, but it has not been enacted. The SBV is also researching a central bank digital currency (CBDC), the Digital Dong, but no pilot has been announced. Enforcement is inconsistent: crypto trading is not explicitly illegal, but using it as a means of payment is banned under the Law on Electronic Transactions (2023).

Vietnam lacks a clear tax framework for cryptocurrencies. The Law on Tax Administration (2019) does not mention crypto assets, leaving a void. In practice, the General Department of Taxation has not issued guidance on declaring crypto gains. Individuals who profit from crypto trading may be subject to personal income tax under the Law on Personal Income Tax (2007), but enforcement is rare. The standard PIT rate for business income is 20%, while capital gains from securities are taxed at 0.1% of sale proceeds. No specific threshold or reporting requirement exists for crypto. The MOF's 2023 draft decree proposed a 0.1% tax on crypto transactions, but it remains under review. Without formal recognition, most crypto activity occurs in the gray market, and tax evasion is widespread.

Vietnam ranks among the world's highest crypto adoption countries. According to Chainalysis' 2023 Global Crypto Adoption Index, Vietnam placed third, with over 4 million users—roughly 4% of the population. Retail usage is driven by remittances, inflation hedging, and gaming. The State Bank of Vietnam estimates that remittances reached $19 billion in 2023, with a portion flowing through crypto channels. Institutional activity is limited due to banking restrictions, but local exchanges like Remitano and Aliniex operate with varying compliance. Play-to-earn games like Axie Infinity, developed by Vietnam's Sky Mavis, popularized crypto in 2021, though activity has since declined. DeFi usage is significant: Vietnam ranks in the top 10 for DeFi adoption, with platforms like PancakeSwap and Uniswap accessible via VPNs.