Vietnam Plans to Ban Overseas Cryptocurrency Exchanges, Promoting Localized Trading Platforms and New Tax System

According to Reuters, the Vietnamese government is working to change its cryptocurrency regulation strategy, planning to restrict citizens from using overseas trading platforms and promote pilot programs for compliant domestic exchanges, gradually integrating these markets into the national financial regulation and tax system.

Vietnamese government aims to prevent capital outflows by banning overseas cryptocurrency platforms

Based on Chainalysis data, Vietnam ranks fourth globally in cryptocurrency adoption index, with an estimated trading volume of $200 billion in the past year. Currently, most Vietnamese investors rely on overseas platforms like Binance, OKX, and Bybit for trading digital assets. To control capital outflow risks, the Ministry of Finance is drafting new regulations to prohibit domestic users from accessing foreign platforms, thereby guiding trading activities into domestically regulated environments.

2025 Global Cryptocurrency Adoption Index Promotes Localized Trading, Five Major Companies Selected for Pilot Program

According to Reuters, five large companies have passed preliminary review and are preparing to participate in the pilot program for domestic cryptocurrency exchanges. The list includes Techcombank, VPBank, LPBank, VIX Securities, and Sun Group-related enterprises. The plan requires operators to have approximately $379 million in capital, restrict trading to Vietnamese dong, and prohibit stablecoins pegged to fiat currencies.

Draft Cryptocurrency Taxation Law: Retail Investors Subject to 0.1% Transaction Tax

While promoting compliant platforms, the Vietnamese government is also establishing a tax framework. A draft proposed in February this year first defined digital assets as property and taxed them similarly to securities transactions. In the future, retail investors will conduct trades through licensed institutions, with a 0.1% transaction tax on each trade, exempt from value-added tax (VAT). Institutional investors will be required to pay 20% corporate income tax on profits after deducting costs.

International exchanges face impact; investor behavior becomes a regulatory variable

If implemented, this policy could lead to significant market share loss for international exchanges, while domestic licensed institutions will gain a competitive advantage. However, many investors are accustomed to cross-border trading. Whether they will comply with the policy by shifting to domestic exchanges or continue using overseas platforms via virtual private networks (VPNs) will be a key factor in assessing the effectiveness of this regulation.

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This article on Vietnam’s plan to ban overseas cryptocurrency exchanges and promote domestic trading platforms and new tax systems first appeared on Chain News ABMedia.