Vietnam's Race to Launch First Licensed Crypto Exchange

Vietnamese companies are preparing to establish the country's first licensed cryptocurrency exchanges. As part of efforts to bolster oversight of crypto trading, Hanoi is planning a pilot program for local exchanges. The government aims to regulate capital flows, addressing concerns over the use of overseas platforms.

Vietnamese companies are in a competitive race to establish the nation's first state-sanctioned cryptocurrency exchanges. With the government aiming to curtail trading on foreign platforms, they have initiated a pilot program for domestically operated digital asset exchanges. A government resolution from February highlights these initiatives.

According to a finance ministry document reviewed by Reuters, five companies have passed the initial qualification stage. This list includes affiliates of Vietnamese private banks Techcombank, VPBank, and LPBank, alongside stockbroker VIX Securities and the prominent Sun Group conglomerate.

Despite the lack of a formal ban on cryptocurrency ownership, Vietnam has set restrictions on cross-border capital transfers, pressing the need for domestic exchanges to manage capital flows effectively. Boosting domestic exchanges could enhance the digital economy, although a comprehensive legal framework is still in development.

(With inputs from agencies.)