Testing the various legalities of digital asset markets

A pilot for cryptocurrency exchanges is expected to play a pivotal role in shaping Vietnam's regulatory framework. Nghiem Minh Hoang, a fintech application expert at the Vietnam Blockchain and Digital Asset Association, told VIR's Hoang Oanh how the initiative will help manage risks and enhance investor protection.

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A new pilot mechanism is expected to shape Vietnam’s cryptocurrency market. What is the primary objective of this policy, and what factors will determine its success during the implementation phase?

The move is expected to bring digital assets under official management, laying the groundwork for a more transparent ecosystem. Its primary objective is to allow the state to verify the policy in practice, collect data, and build a comprehensive legal framework tailored to Vietnam’s specific conditions, rather than merely observing or studying the market from the sidelines.

During this phase, the government is also developing tokenised real-world assets (RWAs) to connect technology with the real economy. According to forecasts by Boston Consulting Group, the global RWA market could reach 10 per cent of GDP by 2033. Based on this rate and national GDP targets set by the government for the next five years, the Vietnamese RWA market could potentially reach $70-80 billion.

Over the next five years, the success of the pilot mechanism will not be measured solely by the number of licensed exchanges but will focus on three main pillars: transparency, liquidity, and investor protection.

Specifically, the goal is to prevent system failures or large-scale asset losses. This requires exchanges to strictly adhere to regulations on e-verification, anti-money laundering, and combating terrorism financing, and achieving the highest information security standard of level 4, compared with level 3, which is currently required for stock exchanges.