The underground flow of hundreds of billions of dollars into Vietnam’s crypto and digital asset market is on the verge of being legitimized, as several official exchanges are set to launch. These platforms promise not only to be attractive investment channels but also potential capital-raising tools for businesses.

Crypto scams highlight urgency of regulation

According to international estimates, Vietnam currently has around 17 million digital asset holders, with crypto transaction volumes reaching approximately USD 105 billion. However, blockchain experts believe this is only the tip of the iceberg, as the actual number of Vietnamese crypto investors is likely much higher. A wave of crypto scams recently uncovered underscores the urgent need for officially sanctioned crypto exchanges in Vietnam.

In one high-profile case, Hanoi police dismantled a fraudulent crypto operation led by Dang Quoc Thang, who created Maxx Group to promote schemes such as Wingstep and Game Naga Kingdom. The group lured more than 3,000 investors and raised around USD 7.86 million (VND 200 billion) through promises of high commissions and returns before abruptly disappearing with the money.

Also in August 2025, police in Phu Tho broke up a pyramid scheme disguised as a digital currency investment. Led by Nguyen Chanh Dang (born 1986), the group used the website https://tcis.ai to attract thousands of investors into the TCIS cryptocurrency. Between June 2024 and July 2025, over 4,000 accounts were created, drawing in more than USD 2 million (over VND 50 billion).

Another case involved a fake cryptocurrency named PaynetCoin (PAYN). Headed by Nguyen Van Ha, the group created the PAYN token and set up a pyramid reward system. Investors were promised monthly interest of 5%–9% and received bonuses in PAYN, which was only tradable on the scammers’ own exchange. Thousands of people were defrauded, and the total amount lost is believed to be in the thousands of billions of dong.

Earlier, in May 2025, Dong Nai police busted a massive scheme called Matrix Chain (MTC), which defrauded tens of thousands of people out of nearly VND 10 trillion (approx. USD 393 million) in a short time.

Blockchain experts point out that the legal grey area surrounding cryptocurrencies makes investors vulnerable to scam platforms and flashy marketing. Tran Xuan Tien, Secretary General of the Ho Chi Minh City Blockchain Association, noted that while crypto is highly appealing to Vietnamese investors, the absence of a regulatory framework has hindered market development. He advises investors to build a foundational understanding of blockchain to avoid being swept away by too-good-to-be-true promises.

Nguyen The Vinh, CEO of Ninety Eight, emphasized that the number of Vietnamese holding crypto assets already surpasses those investing in stocks, reflecting the asset’s strong allure. However, he warns investors to avoid platforms guaranteeing “unrealistic” returns, as no legitimate business model can promise such high profits.

Transparency needed to protect investors

Several Vietnamese banks and firms, including SSI Securities, Techcom Securities (TCBS), and Military Commercial Joint Stock Bank (MB), are actively preparing to participate in the crypto market. Vietnam is expected to establish around five licensed digital asset exchanges with capabilities to connect to international platforms and support roughly 50 tokenized assets. It will also permit the issuance of asset-backed tokens to raise capital, although initially restricted to foreign investors.

The key to developing policies for digital asset exchanges is protecting investor rights, combating money laundering and terrorism financing, and ensuring tax compliance. Legalizing these exchanges will provide businesses with new fundraising channels.

While the legal framework for bonds and securities has matured, digital asset fundraising remains undefined. Relevant laws must be amended to enable proper accounting for capital raised via crypto platforms and to distinguish between company-level fundraising and project-based funding.

Huynh Quoc Nam, Business Development Director at OKX Global, said digital exchanges will improve market transparency through know-your-customer (eKYC) protocols, reducing fraud. He added that crypto exchanges will also generate tax revenue and support growth in adjacent industries.

Blockchain startups also hope that legalized exchanges will encourage Vietnamese-founded companies to return home, rather than relocating to Singapore as seen in previous years. This shift could attract foreign investment and help Vietnam develop a robust fintech ecosystem aligned with global trends.

At a government press conference in early August, Deputy Minister of Finance Nguyen Duc Chi revealed that the Ministry is drafting a decree for piloting digital asset transactions. The Ministry has studied international best practices and, under guidance from the Politburo and Government, aims to finalize and possibly enact the decree as early as this month.

Tran Xuan Tien emphasized that if Vietnam does not open domestic exchanges within the next one to two years, it risks falling behind. He believes that establishing exchanges locally will help control liquidity and data, while allowing international platforms to participate fosters healthy competition and knowledge sharing, given their extensive operational experience and robust security protocols.

Experts note that the highest principle in operating digital asset exchanges is ensuring transparency - disclosing trading volume, costs, and liquidity to prevent market manipulation and protect investors. Moreover, stringent security measures are essential, and exchanges must separate platform assets from investor holdings.

For investors, experts caution that the crypto market, though enticing, carries immense risks. “If you lack knowledge and experience, the more you invest, the more you lose. Don’t dive into crypto without being fully prepared,” Nguyen The Vinh advised.

Having “bled” in crypto trading, lawyer Dao Tien Phong offered a final word of caution: investors must be informed. Each project must be carefully vetted, particularly regarding its business model, founding team, and regulatory compliance, especially in tax obligations.

PV