No Vietnamese Exchange Is Yet Capable of Safely Custodying Digital Assets

Vietnam has no crypto exchange capable of fully securing digital asset custody, warns Phan Duc Trung, Chairman of the Vietnam Blockchain Association. What’s holding the market back?

Phan Duc Trung Speaks Frankly: No Vietnamese Exchange Is Yet Capable of Safely Custodying Digital Assets

As Vietnam accelerates efforts to build a legal framework for blockchain and digital assets, a critical question remains unanswered: are domestic exchanges technically ready to protect users’ assets?
According to Mr. Phan Duc Trung, Chairman of the Vietnam Blockchain and Digital Assets Association, the honest answer—for now—is no.

Speaking at the Vietnam Capital Market Outlook 2026 Forum, Mr. Trung highlighted that while regulations are gradually taking shape, technology and human resources remain the biggest bottlenecks preventing Vietnam from operating secure, institutional-grade crypto exchanges.

Legal Progress Is Not the Same as Operational Readiness

Vietnam has made notable progress in recognizing digital assets at the policy level. However, Mr. Trung emphasized that legal clarity alone does not automatically unlock digital assets as a safe capital channel for the economy.

To function effectively, a digital asset market requires:

• Highly secure infrastructure

• Advanced custody technology

• Skilled engineers and cryptography experts

• Operational standards comparable to global financial institutions

Without these elements, exchanges face systemic risks—especially in asset custody.

Blockchain vs Traditional Finance: A Fundamental Difference

Trading and Settlement Must Be Separated

Mr. Trung drew an insightful comparison between traditional finance and blockchain-based markets:

• In stock markets, the matching engine acts as the central processor.

• In blockchain systems, the ledger handles verification and settlement, similar to a CPU.

Modern digital asset markets require a clear separation:

• Off-chain matching for speed and scalability

• On-chain settlement for transparency and immutability

This architecture is far more complex than conventional securities systems and demands advanced technical expertise.

24/7 Markets Change Everything

Another major difference lies in market rhythm.
While banks and stock exchanges operate on fixed schedules, digital asset markets run 24/7, enabling:

• Real-time settlement

• Continuous liquidity

• Interest and yield calculations by the minute

This constant operation significantly increases both opportunity and risk, placing greater pressure on custody systems.

Tokenization Is Growing—Fast

Mr. Trung cited global forecasts estimating that tokenized assets could represent up to 10% of global GDP by 2030, equivalent to roughly USD 16 trillion.

Major institutions such as:

• JPMorgan

• HSBC

• ICBC

have already integrated blockchain deeply into their core banking systems, achieving hundreds of thousands of transactions per second. This signals that digital assets are no longer experimental—they are becoming institutional infrastructure.

Lessons from Past Collapses: Technology Cannot Be an Afterthought

Reflecting on events like the FTX collapse, Mr. Trung noted that many failures were not purely legal or managerial—but technical.

In several high-profile hacks, attackers exploited:

• Mathematical model flaws

• Behavioral pattern vulnerabilities

• Weak key management systems

Importantly, asset custody in crypto is fundamentally different from traditional securities custody, involving both:

• On-chain custody

• Off-chain custody

Each layer introduces unique risks that require specialized security design.

Stablecoins Are Quietly Dominating Payments

One striking trend is the growing dominance of stablecoins in:

• Payments

• Asset swaps

• Value storage

In practice, stablecoins are often used more widely than central bank digital currencies (CBDCs), partly due to concerns over privacy and surveillance.

Vietnam’s Paradox: High Adoption, Low Infrastructure

Vietnam consistently ranks among the top 10 countries globally for crypto adoption. A large freelance workforce already earns income through digital assets.

Yet, Mr. Trung pointed out that:

• These capital flows are largely invisible in official economic statistics

• Domestic exchanges lack the technical depth to securely custody assets

“At this moment, no exchange in Vietnam truly has sufficient human resources and technology to guarantee safe digital asset custody,” he stated candidly.

The Core Challenge: Synchronization

According to Mr. Trung, Vietnam’s biggest challenge is not choosing between technology, regulation, or talent—but aligning all three simultaneously.

He used a vivid analogy:

“You can’t run a production line where each section operates differently and hope it works. Digital assets require a synchronized system.”

Conclusion

Vietnam’s digital asset market holds enormous potential, but custody security remains the weakest link.
Until exchanges invest deeply in:

• Cryptography talent

• Security architecture

• Institutional-grade custody systems

the market will struggle to scale safely.

The message from Mr. Phan Duc Trung is clear:
regulation opens the door, but technology decides whether the market survives.

Disclaimer

Cryptocurrencies are subject to high market risk and volatility despite high growth potential. Users are strongly advised to do their research as they invest at their own risk. Thank you for supporting BITGP!

BITGP is a trading platform within the Bitget ecosystem, focused on the Southeast Asian market including Vietnam. The exchange leverages Bitget’s infrastructure, liquidity, and User Protection Fund to deliver a secure and reliable trading experience for investors.

Ready to Start?

Register your BITGP account today and join Vietnam’s fastest-growing crypto community.
Follow us on Twitter and Telegram for campaign updates, airdrops, and industry insights.
🌐 Visit bitgp.com to learn more.