As the expansion of digital assets continues to unlock new avenues for innovation and economic engagement, experts are voicing urgent concerns over regulatory shortcomings that leave Vietnamese users exposed to significant legal, financial, and operational risks.
Vietnam, recognized among the world’s leading nations in cryptocurrency adoption, sees most of its users participating at a basic level, often motivated by short-term gains rather than grounded in long-term strategy or technical expertise. Trương Gia Bảo, Chairman of the Sustainable Blockchain Club, noted that a substantial share of Vietnamese traders displays “FOMO” behavior—fear of missing out—without adequate knowledge or planning.
“The market here is wide, but not deep,” Bảo observed. “We see millions participating in entry-level transactions, but few are involved in developing blockchain solutions or making institutional-grade investments.”
American analytics firm Chainalysis reported that Vietnam ranked fifth globally in its 2024 Global Crypto Adoption Index, with inflows totaling around US$120 billion between July 2022 and June 2023. In the same timeframe, Vietnamese investors realized approximately US$1.18 billion in crypto profits. Yet, experts stress these figures highlight the volume of activity rather than market sophistication or robust investor protections.
Despite a rising number of cryptocurrency holders—estimated between ten to seventeen million—Vietnam still lacks a comprehensive legal framework governing digital asset transactions. Cryptocurrencies such as Bitcoin and Ethereum are not officially recognized as legal tender, and no guidelines currently exist for managing crypto accounts on global platforms.
Nguyễn Đình Thắng, Chairman of the VINA Fintech Club and Head of the Digital Asset Management Centre, warned that the absence of regulatory clarity leaves users particularly vulnerable, especially in peer-to-peer (P2P) trading where participants convert Vietnamese đồng into stablecoins like USDT or USDC for use on international exchanges.
“These transactions are largely unregulated, leaving participants vulnerable to fraud, money laundering and asset loss,” Thắng said. “The system lacks safeguards. When things go wrong, there’s no formal mechanism for recovery or protection.”
The global instability of digital assets further underscores the need for stronger oversight. The collapses of high-profile platforms such as Terra-Luna in South Korea and FTX, once valued at over $30 billion, have demonstrated how quickly poorly regulated markets can implode, often devastating individual investors first.
“In such cases, individual investors are often the first to suffer losses, with little recourse,” Thắng added. “Without legal support or insurance frameworks, Vietnamese users remain especially exposed.”
Still, many experts believe Vietnam has a chance to carve a leadership role in the digital asset arena through the development of a central bank digital currency (CBDC). A state-backed digital đồng could introduce stability, enhance transaction efficiency, and offer a regulated alternative to private cryptocurrencies.
“CBDCS offer a way to embrace the benefits of digital finance while ensuring state oversight and security,” Bảo said.
This strategy aligns with initiatives by central banks in China, the European Union, and Singapore, where digital currencies are being explored or piloted.
Calls are also growing for Vietnam to move beyond its civil law traditions and embrace a more flexible, common law-style regulatory approach. Unlike rigid civil law systems, common law frameworks can evolve alongside rapidly changing financial markets. Countries such as the US, UK, Singapore, and Switzerland have successfully used this model to navigate the complexities of digital finance.
“Civil law tends to lag behind the market,” Bảo remarked. “If Việt Nam wants to lead in financial technology, we need regulatory systems that evolve with reality, not after it.”
Responding to these concerns, the Vietnamese government has directed the Ministry of Finance to develop a legal framework for digital assets and related services, with completion targeted for May 2025. The draft Law on Digital Technology Industries, introduced to the National Assembly in late 2024, includes initial provisions addressing digital assets.
In the interim, experts urge Vietnamese investors to exercise caution and conduct thorough due diligence before engaging with cryptocurrencies, especially on unregulated international platforms.
