Vietnam Proposes Heavier Fines for Unauthorized Crypto Trading: What Investors Need to Know

Vietnam is proposing fines of up to VND 50 million for crypto investors trading through unlicensed platforms. Learn what’s changing, why it matters, and how it impacts the future of crypto regulation in Vietnam.

Vietnam Proposes Heavier Fines for Unauthorized Crypto Trading

Vietnam’s crypto market is entering a new phase of regulation. Authorities are proposing significantly higher penalties for individuals and organizations involved in crypto asset trading outside licensed platforms, signaling a clear shift toward stricter oversight and investor protection.

For millions of Vietnamese crypto users, this proposal could reshape how digital assets are traded, stored, and managed in the coming years.

Why Vietnam Is Tightening Crypto Penalties

Vietnam has seen explosive growth in crypto adoption over the past few years. According to international estimates, around 17 million Vietnamese users currently hold or trade crypto assets, with total holdings valued at billions of US dollars.

However, despite rapid adoption, the legal framework has lagged behind market reality.

Key challenges regulators are facing

• Crypto trading has largely occurred outside formal supervision

• Investors face risks from fraud, hacks, and unprotected custody

• There are growing concerns around money laundering and illicit financing

• No unified enforcement mechanism currently exists

To address these issues, Vietnam’s Ministry of Justice has released an assessment of a draft decree on administrative penalties for crypto-related violations, marking a critical step toward formal regulation.

Proposed Fines for Unauthorized Crypto Trading

Under the draft decree prepared by the Ministry of Finance, new penalties are proposed for investors who trade crypto assets without going through licensed service providers.

Proposed penalties include:

For individual investors

• VND 30–50 million (≈ USD 1,200–2,000)
  For trading crypto assets through platforms not licensed by the Ministry of Finance

• VND 70–100 million
  For trading crypto assets that are explicitly prohibited under current pilot regulations

These penalties are designed to discourage informal, unregulated trading and push investors toward compliant platforms.

Why Regulators Want Higher Fines

Several government bodies and industry stakeholders believe the initial penalty levels were too lenient given the scale of Vietnam’s crypto market.

Key viewpoints from stakeholders

• Ministry of Public Security proposed raising fines to ensure sufficient deterrence

• SSI Digital Technology JSC suggested even stricter penalties, arguing crypto transactions are economically comparable to securities trading

• Regulators ultimately accepted higher fine ranges to better reflect market risks

The consensus: light penalties won’t work in a high-volume, high-risk market.

Stricter Rules for Crypto Service Providers

Beyond individual investors, the draft decree also targets crypto service providers, especially those failing to protect user assets.

Updated penalties for service providers

• Fines of up to VND 200 million

• Suspension of operations for 1–3 months

• Mandatory compensation for investor losses caused by security failures

This change reflects growing concern over custody risks, system breaches, and poor internal controls.

Vietnamese authorities emphasize that crypto custody is fundamentally different from traditional securities custody, involving both on-chain and off-chain security risks.

Should Crypto Be Regulated Like Securities?

One of the most debated points is whether crypto assets should face penalties comparable to securities violations.

Some industry players proposed aligning crypto fines with securities law:

• Up to VND 1.5 billion for individuals

• Up to VND 3 billion for organizations

However, regulators explained that current administrative law caps penalties based on industry classification. Since crypto is still categorized under digital technology, fines remain lower—for now.

Authorities noted that penalty ceilings could be adjusted after the pilot phase, once the market matures and enforcement data becomes available.

Investor Protection: Refunds and Forced Compensation

Another major update is the inclusion of mandatory refunds.

Under the revised draft:

• Illegal token offerings can be canceled

• Investors must be refunded their capital

• Additional interest may be paid based on bank deposit rates

This provision strengthens investor rights and discourages projects from exploiting legal gray zones.

What This Means for Crypto Investors in Vietnam

For everyday investors, the message is clear:

Key takeaways

• Trading crypto through unlicensed platforms could soon carry real financial consequences

• Compliance will matter more than ever

• Investor protection is becoming a regulatory priority, not an afterthought

Rather than banning crypto, Vietnam appears to be formalizing the market, pushing it toward transparency, accountability, and long-term stability.

BITGP Insight: Regulation Is a Turning Point, Not the End

At BITGP, we see this move as a necessary step in crypto’s evolution.

Stronger regulation may feel restrictive in the short term, but it helps:

• Reduce fraud and bad actors

• Protect retail investors

• Attract institutional participation

• Build trust in Vietnam’s digital asset ecosystem

Crypto is no longer operating on the sidelines. With clearer rules and higher standards, Vietnam is laying the groundwork for a safer, more sustainable crypto market.

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.

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