Vietnam is preparing to impose fines of up to 50 million dong (approximately $1,900) on retail users who trade on unlicensed offshore cryptocurrency exchanges including Binance and OKX, according to a draft decree circulated by the Ministry of Finance. The measure, part of a broader crackdown on capital flight and unregulated digital asset activity, would mark one of the most aggressive retail-level enforcement actions in Southeast Asia.
The draft decree, which is currently under inter-ministerial review, classifies cryptocurrency trading on platforms without a Vietnamese operating license as a violation of foreign exchange and anti-money-laundering regulations. Individuals found transacting on such platforms could face administrative penalties ranging from 10 million to 50 million dong, while the exchanges themselves could be subject to access blocking, asset freezes, and criminal referral. The State Bank of Vietnam would coordinate with the Ministry of Information and Communications to enforce IP-level restrictions on non-compliant platforms.
Vietnam has consistently ranked among the top countries globally for crypto adoption by retail users, driven by a young, tech-savvy population and limited access to traditional investment products. Chainalysis’s 2023 Global Crypto Adoption Index placed Vietnam first worldwide for grassroots adoption. Yet the government has refused to recognize cryptocurrency as a legal asset or payment method, leaving the industry in a regulatory gray zone. A 2018 directive banned crypto payments, and a 2021 prime ministerial decision tasked the Ministry of Finance with drafting a legal framework — a process that remains incomplete.
Binance and OKX dominate the Vietnamese market despite lacking local licenses. Both exchanges offer Vietnamese-language interfaces, VND trading pairs, and peer-to-peer on-ramps that bypass traditional banking channels. Industry estimates suggest the two platforms account for over 60% of the country’s retail crypto volume. Neither exchange has commented publicly on the draft decree, though Binance has previously stated it engages constructively with regulators worldwide and complies with applicable laws.
The proposed fines — equivalent to several months’ average urban income — have sparked backlash from Vietnam’s crypto community. Critics argue the decree penalizes users for the government’s own failure to establish a licensing regime, effectively criminalizing participation in a market the state has refused to regulate. Legal experts note the decree’s reliance on foreign-exchange statutes is a stretch, as cryptocurrency is not recognized as a currency under Vietnamese law. The Ministry of Finance has opened a 30-day public comment period before finalizing the text.
Regionally, Vietnam’s approach contrasts with Indonesia and the Philippines, which have created licensed exchange frameworks with consumer protections. Thailand’s SEC requires exchanges to register and segregate customer assets, while Singapore’s MAS operates a licensing regime under the Payment Services Act. Vietnam’s draft decree, by targeting users rather than building a compliance pathway, risks driving activity further underground and onto decentralized platforms that are harder to monitor.
Separately, Cointelegraph’s Asia Express newsletter highlighted a controversy at Malaysia’s Network School, an educational initiative backed by the Malaysian government and Tether, which reportedly barred an Israeli citizen from participating — drawing accusations of discrimination and diplomatic protests. The incident underscores the geopolitical fault lines emerging as crypto infrastructure intersects with state-backed projects in the region. As Cointelegraph reported, Vietnam’s proposed fines represent an escalation in Southeast Asia’s fragmented regulatory landscape, where enforcement often outpaces legislative clarity.
