• The Vietnamese government has approved citizens to openly trade cryptocurrencies under strict rules, adding that all activities must be done in Vietnamese dong.
• Local companies seeking a license must raise at least 10 trillion dong, with foreign investors capped at only 49% of total ownership.

Vietnam has finally given trading cryptocurrency a try. More than 10 years after the official launch and trading of the first cryptocurrency, the Vietnamese government has finally allowed for citizens within the country to have access to openly trade cryptocurrency with clear rules, potentially opening the door to the $100 billion crypto market that had secretly existed in Vietnam.

Crypto Adoption and Regulatory Rules Set by the Vietnamese Government

A few hours ago, the local newspaper for the Vietnamese government released an official statement regarding their stance on cryptocurrency. According to the details shared, the government has approved a five-year trial program that allows citizens to openly trade crypto after many years of doing it quietly. According to the official statement shared, this movement is fully backed up by the state in an effort to regulate crypto assets.

So far, the Vietnamese government has only approved local firms to run exchanges under this program. All foreign platforms cannot operate yet, and all crypto-related activities, whether issuing tokens, trading, or making payments, must be done in Vietnamese dong.

Also Read: Nigeria EFCC Admits Risks Associated With Crypto, Calls For Regulation

So basically, the government has given permission to local businesses to create and carry out all cryptocurrency activities, but they may only sell them to investors from outside the country, and they have to be backed by real, tangible assets and cannot represent securities or local fiat money. Citizens, on the other hand, are free to trade but are not allowed to issue tokens themselves.

As many Vietnamese-based crypto platforms are excited about the news of the government approval on cryptocurrency, the criteria to be a fully licensed operator in Vietnam are high and come with a huge financial demand.

According to the details, the government requires that any interested company must raise at least 10 trillion dong, roughly $379 million. Out of this money, 65% has to be provided by institutional backers. And, outside investors cannot control the business since ownership for them is only limited to 49%.

Some business partnerships have already started to form; Dunamu, the firm behind Upbit, for instance, has signed an agreement with the Vietnamese Military Bank to build a local exchange using its technology.

As of the time of writing, there is work going on in that project. In all of this adoption, the Vietnamese government still does not see Bitcoin and other cryptocurrencies as legal tender in the country. As of today, when this was documented, the government has no plan to change that, but it is still consideejng skme pilot zones.

Also Read: Pudgy Penguins Break Falling Wedge, Eyeing Rally Toward $0.075