Vietnam Erects $408M Crypto Exchange Wall, Proposes 0.1% Transaction Tax

Vietnam’s Ministry of Finance has released a draft circular proposing a 0.1% tax on gross crypto transaction values for individuals, aiming to align digital asset trading with the country’s securities regime. The proposal arrives as the government operationalizes a restricted pilot program that mandates a staggering 10 trillion VND (~$408 million) charter capital for licensed exchanges, a barrier nearly three times higher than the minimum requirement for commercial banks.

The $408M Moat

Under the pilot framework authorized by Resolution 05/2025/NQ-CP (issued September 2025), the entry ticket for operating a legal crypto exchange in Vietnam is effectively limited to the nation’s largest financial institutions. The draft rules stipulate:

• Capital Floor: A minimum paid-up charter capital of 10 trillion VND (~$408 million).
• Ownership Cap: Foreign ownership is restricted to 49%.
• Institutional Backing: At least 65% of capital must come from institutional founders. Crucially, 35% must be contributed by regulated entities (banks, securities firms) with two years of profitable operations.

This capital structure explicitly prevents crypto-native startups from entering the licensed market, instead favoring entities like Techcombank’s TCEX or SSI Digital, which have the balance sheets to absorb these requirements.

“The threshold is three times higher than the minimum charter capital required for a commercial bank and about 33 times that of an aviation transport company.” . Hanoi Times

The Tax Regime

The Ministry’s draft circular, designed to support the amended Personal Income Tax Law taking effect July 1, 2026, bifurcates the tax burden:

• Retail Traders: Subject to a 0.1% Personal Income Tax (PIT) on the gross turnover of every transfer. This applies to both residents and non-residents trading on licensed platforms. VAT is exempt.
• Domestic Corporates: Taxed at 20% on net profits (Corporate Income Tax).
• Foreign Entities: Organizations trading via Vietnamese providers face a 0.1% tax on revenue.

Market Implications

While Vietnam consistently ranks in the top five of Chainalysis’ Global Crypto Adoption Index, this framework attempts to corral that volume into a highly controlled domestic intranet. By mandating settlement in Vietnamese Dong (VND) and imposing a 0.1% levy per side, the regime compresses arbitrage spreads and discourages high-frequency trading strategies onshore.

With the pilot running through 2030, the government is betting that legal clarity, even at a high cost, will entice volume away from offshore unregulated venues, which face potential criminal liabilities under the new roadmap.