Source: Cointelegraph | Category: Cryptocurrency
Retail cryptocurrency traders in Vietnam who use offshore exchanges including Binance and OKX could face fines of up to 49 million Vietnamese dong (approximately $1,900) under a new regulatory crackdown, according to a Cointelegraph Magazine investigation. Meanwhile, Chinese authorities are reportedly scrutinizing Coinbase’s limited operations in the region, signaling expanding enforcement across Asia.
Vietnam’s State Bank has reiterated that cryptocurrency is not a legal payment method and that trading on unlicensed foreign platforms violates foreign exchange management laws. The 49 million dong penalty—roughly seven times the average monthly wage—applies to individuals who buy, sell, or hold crypto through non-domestic venues. Enforcement has historically been sporadic, but officials signaled stepped-up monitoring of peer-to-peer and on-ramp transactions.
“Vietnam has one of the world’s highest crypto adoption rates per capita, but the regulatory framework remains prohibitive,” said a Hanoi-based compliance attorney who requested anonymity. “Users are effectively forced into a gray zone where they either use offshore exchanges and risk fines, or abstain entirely.”
Binance and OKX dominate Vietnamese trading volumes, with local estimates suggesting over 5 million active users between them. Neither exchange holds a Vietnamese license, though both have explored partnerships with domestic firms. OKX announced a strategic cooperation with a local bank in 2023 that later stalled amid regulatory pushback.
In China, where crypto trading has been banned since 2021, regulators are reportedly examining Coinbase’s institutional custody and prime brokerage services offered to Hong Kong-based entities with mainland connections. The U.S. exchange received a Hong Kong virtual asset service provider license in 2024 but has no mainland presence.
The Asian enforcement wave coincides with Malaysia’s Network School controversy, where an Israeli citizen was barred from entering the country to speak at a blockchain education event—prompting criticism from Israeli officials and highlighting the geopolitical fault lines intersecting with crypto regulation in the region.
Industry observers say the mixed signals—Hong Kong embracing crypto while mainland China and Vietnam restrict it—create arbitrage opportunities for compliant firms but peril for retail users caught in jurisdictional crossfire.
Source: Cointelegraph
