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Directive 05/CT-TTg: Vietnam's Crypto Framework Development and What It Means for Users

Directive 05/CT-TTg: Vietnam's Crypto Framework Development and What It Means for Users

Michael James 6 January 2026 1 Comments

On September 9, 2025, Vietnam’s government dropped a bombshell on its cryptocurrency market: Resolution No. 05/2025/NQ-CP, also known as Directive 05/CT-TTg. This isn’t just another policy tweak. It’s the country’s first-ever legal framework for cryptocurrency exchanges - and it’s one of the strictest in Southeast Asia. For the 21 million Vietnamese who trade crypto, this means everything is changing. Fast.

What Exactly Is Directive 05/CT-TTg?

Directive 05/CT-TTg is a five-year pilot program that turns cryptocurrency from a legal gray area into a regulated asset class in Vietnam. It’s not a ban. It’s not a free-for-all. It’s a controlled system where only a handful of companies will be allowed to operate - and only if they meet brutal financial and technical requirements.

The Ministry of Finance is now the only body that can issue licenses. No more unofficial platforms. No more anonymous trading. Every exchange must be registered, capitalized, and monitored. The rules kicked in immediately, but exchanges got a six-month grace period after the first license is issued to comply. That grace period could start anytime between October 2025 and January 2026 - no one knows exactly when the first license will be granted.

The $379 Million Barrier

The most shocking part? The minimum capital requirement: 10 trillion VND - roughly $379 million USD. That’s not a typo. It’s more than 27 times higher than Thailand’s requirement and nearly 30 times what Singapore demands for similar-sized firms.

Here’s how it breaks down:

At least 65% of that capital - $246 million - must come from institutional investors, not individuals.
Foreign ownership is capped at 49%. Vietnamese entities must control the majority.
All transactions must happen in Vietnamese dong (VND). No USDT, no USD, no EUR. Just VND.

For context: A small exchange in Hanoi with $190,000 in capital and 5,000 users - the kind that’s been quietly serving the market for years - now has to raise $378.8 million overnight or shut down. That’s not a challenge. It’s a death sentence for 99% of existing platforms.

Why the Crazy Capital Requirement?

Why such a high bar? Because Vietnam saw what happened in 2022.

During the crypto winter, 15 unregulated Vietnamese exchanges collapsed. Over half a million people lost money. Some vanished overnight. Others froze withdrawals for months. The government lost control. The State Bank of Vietnam estimated that $10.2 billion in crypto transactions flowed through unregulated channels in 2025 alone - most of it outside any oversight.

The goal here isn’t to kill crypto. It’s to stop the chaos. Dr. Nguyen Minh Tuan of Vietnam National University says the capital requirement is “necessary to prevent the market instability we witnessed.” He’s right. But critics like blockchain expert James Wo argue it’s designed to create a state-backed oligopoly - letting only a few well-connected players survive.

Fiat-Backed Stablecoins Are Banned

Here’s another curveball: you can’t issue or trade stablecoins backed by USD, EUR, or any fiat currency. That’s a huge deal. Stablecoins like USDT and USDC made up 63.8% of all crypto transactions in Vietnam in 2025, according to Chainalysis.

Why ban them? The government fears capital flight. If people can trade USDT for VND, they can easily move money out of the country. That’s exactly what the State Bank of Vietnam has been trying to stop for years.

But here’s the problem: most global traders use stablecoins to avoid volatility. Without them, Vietnam’s market becomes less attractive to international investors. And without international volume, local exchanges can’t grow. It’s a catch-22.

Platforms now have to build new token systems - maybe backed by gold, real estate, or Vietnamese government bonds. But no one knows how that will work yet. The technology doesn’t exist at scale.

An abandoned crypto shop with a red rose on a keyboard,窗外透出NDAChain建筑的光芒。

Technology Requirements: NDAChain and National Standards

It’s not just about money. Exchanges must use blockchain technology that meets Vietnam’s National Cryptography Standard (TCVN 13057:2025). That means they have to connect to NDAChain - a government-built blockchain launched in July 2025 - for all transaction logs.

Every trade, every withdrawal, every deposit must be recorded on this state-controlled ledger. The State Bank of Vietnam now has real-time access to all activity on licensed platforms. That’s surveillance with teeth.

Plus, KYC/AML rules are now legally binding. You can’t trade unless you’ve passed full identity verification - and your data must sync with Vietnam’s national anti-money laundering system. No more fake IDs. No more offshore wallets. No more anonymity.

Who Will Survive?

Industry analysts think only 3 to 5 exchanges will qualify for licenses in the first year. Why? Because raising $379 million isn’t something startups can do. It’s not even something most private equity firms can do quickly.

Who has that kind of cash? Likely state-backed financial groups, major Vietnamese conglomerates like Vingroup or Viettel, or foreign banks with deep local ties. Think of it like a banking license - but for crypto.

That means the market will shrink from 21 million users down to maybe 5 million in the first year. The rest? They’ll either move offshore - to Binance, Kraken, or Bybit - or stop trading altogether.

A CoinGeek survey found 79.6% of Vietnamese crypto users think the capital requirement is too high. And 41.2% said they’d leave the country’s market if domestic options become too restricted. That’s not just a risk - it’s a likely outcome.

What About Taxes?

On September 20, 2025, Deputy Finance Minister Tran Hoang An confirmed that tax rules for crypto will be finalized by November 15, 2025. Here’s what’s expected:

0.1% tax on trades under 100 million VND ($3,900)
0.3% tax on trades above that amount

That’s low compared to Europe or the U.S. - but it’s still a new cost. And since all trades must go through licensed exchanges, the government will know exactly how much you made - and when.

Youth on a rooftop hold new compliant tokens as a holographic chart drops, dawn light breaking behind them.

What’s Next for Vietnam?

This framework is part of a bigger plan. Vietnam wants its digital economy to grow from 9.5% of GDP in 2024 to 20% by 2030. Regulated crypto is supposed to contribute 1.2-1.8% of that.

They’re betting that by controlling the market, they can capture value - tax revenue, job creation, tech development - instead of losing it to offshore platforms.

But there’s a risk. If the market collapses and users flee, Vietnam loses its position as the second-most crypto-adopted country in the world (after Ukraine). If only a few giants survive, innovation dies. If the stablecoin ban stifles liquidity, traders leave.

By 2028, Vietnam could become Southeast Asia’s third-largest regulated crypto market - behind Singapore and Thailand. Or it could become a cautionary tale: a country that tried to control innovation and ended up pushing it underground.

What Should You Do?

If you’re a Vietnamese crypto user:

Don’t panic. The transition takes time.
Start moving your funds to licensed platforms - once they launch.
Be ready to verify your identity fully. No shortcuts.
Understand that your trading options will shrink. Stablecoins won’t be available locally.

If you run a small exchange:

Start talking to investors - now.
Prepare your tech stack for NDAChain integration.
Consider selling your business to a larger player.
If you can’t meet the capital requirement, shut down before the grace period ends.

If you’re an investor:

This isn’t a speculative play. It’s a regulatory play.
Look for companies with deep government ties and access to institutional capital.
Don’t assume profits will come quickly. Compliance will cost millions.

Will This Work?

It’s too early to say. The framework is bold. It’s comprehensive. It’s also incredibly rigid.

On one hand, it ends the Wild West era. No more scams. No more vanished exchanges. Users will have legal recourse. The system will be transparent.

On the other hand, it kills competition. It pushes users offshore. It ignores global market realities. And it may drive innovation - and money - out of Vietnam entirely.

One thing is certain: Vietnam’s crypto market will never be the same. The old rules are gone. The new ones are written in stone. Now, everyone has to adapt - or get left behind.

Is cryptocurrency legal in Vietnam now?

Yes, but only through government-licensed exchanges. Trading crypto is legal if you use a platform that has received a license under Resolution No. 05/2025/NQ-CP. All other platforms are now illegal. You can still hold crypto, but you can’t trade it unless you use an approved exchange.

Can I still use USDT or other stablecoins in Vietnam?

No. Under Directive 05/CT-TTg, all crypto assets must be backed by real underlying assets - not fiat currencies like USD or EUR. That means USDT, USDC, and other stablecoins tied to the dollar are banned on licensed exchanges. You can still hold them privately, but you can’t trade them for VND on any official platform.

Do I need to pay taxes on crypto in Vietnam?

Yes. Starting November 15, 2025, capital gains from crypto trades will be taxed. Transactions under 100 million VND ($3,900) are taxed at 0.1%. Trades above that are taxed at 0.3%. All taxes will be collected automatically by licensed exchanges, so you won’t need to file separately.

How many crypto exchanges will be allowed in Vietnam?

Only 3 to 5 exchanges are expected to qualify for licenses in the first year. The $379 million capital requirement is so high that most existing platforms can’t meet it. The Ministry of Finance will likely prioritize state-linked firms and large financial institutions with deep pockets.

Can foreigners own a crypto exchange in Vietnam?

Yes, but only up to 49%. Vietnamese entities must hold at least 51% ownership. This rule is designed to ensure local control over financial infrastructure. Foreign companies can invest, but they can’t run the business alone.

What happens to my money if my exchange shuts down?

If your exchange is unlicensed and shuts down, you likely won’t get your money back. The new law protects users only on licensed platforms. Once a platform is licensed, it must hold customer funds in segregated accounts and be audited regularly. If a licensed exchange fails, the Ministry of Finance may step in to help recover assets - but there’s no guarantee.

Is Vietnam’s crypto framework better than other countries’?

It’s stricter than most. Thailand and Singapore allow lower capital requirements and permit stablecoins. Vietnam’s approach is more like Indonesia’s - cash-only, state-controlled, and highly restrictive. It’s designed for security, not growth. It may prevent fraud, but it also stifles innovation. Whether it’s “better” depends on your goal: safety or access.