Vietnam Plans to Restrict Foreign Crypto Exchanges, Boost Local Platforms

Vietnam is on the verge of a significant overhaul of its cryptocurrency landscape. The government is preparing to restrict access to international exchanges such as Binance, OKX, and Bybit. This move, driven by the Ministry of Finance, aims to curb capital outflows.

Currently, over US$200 billion in annual trading volumes flows through offshore platforms. By implementing regulations that favor domestic exchanges, Vietnam seeks to enhance risk management, improve taxation, and retain financial resources within its borders.

Vietnam Shifts Toward Domestic Crypto Exchanges

Vietnamese authorities are drafting rules to ban Vietnamese traders from using unregistered foreign exchanges. If implemented, the laws would make Vietnam one of the first Southeast Asian countries to apply such stringent measures.

Unlike India, which later allowed foreign platforms to register locally, Vietnam appears committed to establishing a tightly controlled domestic system. Once finalized, a six-month transition period will be introduced. During this time, all trading activities must be conducted on approved local exchanges.

Five major players have already passed initial screenings for local licensing. The platforms considered include affiliates of prominent banks like Techcombank, VPBank, and LPBank, as well as VIX Securities and Sun Group. These firms are positioning themselves to dominate the emerging market. The first official exchanges are expected to operate in designated financial hubs such as Ho Chi Minh City and Da Nang. They will facilitate trades in Vietnamese dong.

Impact on Traders and Global Platforms

The impending regulations will have profound implications for traders and exchanges. Currently, more than 90% of crypto trading in Vietnam occurs on international platforms. Binance alone accounts for over 60% of the market share.

The transition to domestic exchanges may lead to liquidity constraints and fewer trading pairs, disrupting user experiences. Observers caution that users might migrate to decentralized exchanges (DEXs), non-custodial wallets, or peer-to-peer trading options.

While the government is exploring a proposed 0.1% tax on trades through licensed platforms, there are concerns. The lack of clear guidelines on compliance and risk management raises questions among market participants. This uncertainty could deter some traders from moving to domestic exchanges.

Vietnam's New Regulatory Era for Crypto

Vietnam's evolving regulatory framework reflects a broader trend toward increased oversight in the cryptocurrency market. The National Assembly's recent Law on Digital Technology Industry, effective January 1, 2026, recognizes digital assets as legal property.

The law lays the groundwork for taxation and regulatory oversight, and is part of a five-year pilot program initiated in September 2025. It aims to create a structured and secure environment for crypto trading.