Vietnam Lays Out Crypto Tax Proposal and Strict Exchange Rules

Background and Context

Vietnam ranks among the world’s highest cryptocurrency adoption markets, driven by retail participation, cross-border remittances, play-to-earn gaming, and broader financial inclusion among a young, digitally native population. For years, however, crypto activity operated in a legal gray area. Authorities repeatedly warned about risks but stopped short of creating clear rules.

Momentum shifted in 2025 with the passage of the Digital Technology Industry Law, which takes effect in 2026 and formally recognizes crypto assets as a form of property. Subsequently, Resolution No. 05/2025/NQ-CP, issued in September 2025, launched a five-year pilot program for crypto issuance, trading, and related services. 

No formal crypto-specific tax regime has previously existed in Vietnam. Since 2017 and 2018, the State Bank of Vietnam has prohibited cryptocurrencies from being used as legal tender or as a payment method. However, ownership, holding, and trading remained largely unregulated and untaxed.

When Vietnam passed the Digital Technology Industry Law and announced the pilot program in September 2025, the crypto community responded with cautious optimism. Many investors and analysts welcomed the legal recognition of crypto assets and the promise of regulatory clarity. 

Details of the Proposed Regulations

The draft circular defines crypto assets as digital assets that rely on cryptographic or similar technologies for issuance, storage, and transfer verification. Under the Vietnam crypto tax proposal, individual investors would pay a 0.1% personal income tax on the full value of each transfer executed through licensed service providers. Authorities would calculate this tax on turnover rather than profit, aligning it with the securities transaction tax model.

In contrast, domestic companies and institutional investors would pay a 20% corporate income tax on net profits. This approach allows deductions for purchase costs and directly related expenses. At the same time, all crypto asset transfers and trading activities would remain exempt from value-added tax.

For exchange operators, the proposal sets especially high barriers. Licensed platforms would need a minimum charter capital of VND 10 trillion, a level exceeding that required for commercial banks. Regulators designed this threshold to ensure financial resilience and limit systemic risk under the Vietnam crypto tax proposal. In addition, foreign ownership would be capped at 49%, reinforcing domestic control over licensed exchanges.

Implications for the Market

For individual traders, the 0.1% turnover-based tax would add a small but recurring cost to every transaction. As a result, the measure may discourage ultra-high-frequency trading while having limited impact on longer-term investors and larger, less frequent trades. 

More broadly, the framework aims to bring crypto activity into a regulated and taxable environment. Over time, this could reduce reliance on offshore platforms, improve transparency, strengthen investor protections, and generate new tax revenue. Although licensed local exchanges may face short-term volume adjustments during the transition, many observers expect longer-term benefits.