The State Securities Commission (SSC) has just issued a clear policy signal regarding the management of the cryptocurrency market in Vietnam: after the first domestic exchange officially goes into operation, all transactions by domestic investors must be conducted there. Unlicensed platforms, including both Decentralized Exchange and international exchanges, will not be allowed to provide services in Vietnam, in accordance with Resolution 05.
This message was delivered by Mr. To Tran Hoa, Deputy Head of the Standing Committee of the Cryptocurrency Trading Market Management Board under the State Securities Commission, at the workshop "Pilot Cryptocurrency: Monitoring Mechanism, Operational Capacity and Investment Standards" held on the morning of March 25th in Hanoi.
Why tighten regulations on DEXs?
Responding to a question about the need to regulate decentralized exchanges, which are designed to operate outside the reach of government agencies, Mr. Hoa acknowledged that this is not a simple problem. Regulatory agencies are well aware of the decentralized and anonymous nature of the cryptocurrency market, but that is not a reason to neglect regulation.
According to Mr. Hoa, the majority of illicit funds originate from DEXs (Debit, Exchange, and Transaction) platforms before being "legitimized" when they flow through Centralized Exchange. This is precisely the loophole that international organizations such as the Financial Action Task Force (FATF) and the International Organization of Securities Commissions (IOSCO) have repeatedly warned about. Therefore, building a licensing and supervisory mechanism is not simply a policy choice for Vietnam alone, but a global requirement in the fight against money laundering.
First-time investors (F0) are not recommended to participate.
During the pilot phase, the regulatory body clearly identified priority targets as investors with practical experience, currently trading on international exchanges or decentralized platforms, and willing to migrate to a licensed domestic exchange. "At this stage, we do not recommend that novice investors (F0) enter the market," a representative from the State Securities Commission stated frankly.
In parallel, the State Securities Commission of Vietnam (UBCKNN) announced that it will coordinate with the Vietnam Digital Asset and Blockchain Association (VBA) to implement programs to disseminate financial knowledge to ordinary investors, preparing the foundation for the next expansion phase.
Regarding Token that do not yet meet the official listing requirements, Mr. Hoa stated that during the pilot phase, an over-the-counter (OTC) trading mechanism will exist between investors as an intermediary solution.
Binance and the "race" to enter the Vietnamese market.
With policies gradually taking shape, international exchanges have begun preparing. Binance – the world's largest cryptocurrency exchange – recently posted a job opening for a General Manager in Vietnam, requiring candidates to have the ability to work directly with state management agencies. However, to obtain a "pass" to enter the Vietnamese market, experts assess that Binance and similar foreign exchanges will have to overcome numerous compliance hurdles, including the requirement to store user data within Vietnam and to fulfill all tax obligations as a domestic legal entity.
