Stronger Penalties Proposed for Intentional Violations in Crypto Asset Trading

Vietnam is considering tougher penalties for intentional violations in crypto asset trading. Learn what the proposed sanctions mean, why stronger deterrence is needed, and how they could reshape Vietnam’s digital asset market.

Stronger Penalties Proposed for Intentional Violations in Crypto Asset Trading

Vietnam’s crypto asset market is gradually moving closer to a formal legal framework. Alongside pilot programs and regulatory discussions, policymakers are now focusing on enforcement and deterrence, especially for intentional violations in crypto asset trading.

Recently, the Ministry of Finance released a summary report responding to public feedback on the draft decree governing administrative penalties in the crypto asset market. One key theme stands out: many stakeholders believe that current fines alone are not strong enough to discourage deliberate violations.

So what changes are being proposed, and why do they matter for investors and service providers? Let’s break it down.

Why Vietnam Is Considering Stronger Deterrence Measures

A rapidly growing but underregulated market

Crypto asset adoption in Vietnam has grown at an impressive pace. Millions of users participate in trading, holding, and transferring digital assets, often through international platforms. However, legal gaps still exist, especially around enforcement mechanisms.

According to regulators, relying solely on international experience is not enough. Each country faces different risks depending on market maturity, investor awareness, and technological capacity. Vietnam’s authorities now emphasize the need to base regulations on domestic realities, not just global trends.

From “warning-level” fines to real deterrence

Several agencies argue that low financial penalties may fail to deter intentional violations, particularly when illegal gains can far exceed the cost of fines. In practice, some bad actors may simply treat penalties as a “business expense.”

This concern has led to proposals for stronger sanctions, including non-monetary measures that directly impact offenders’ ability to operate in the market.

Key Proposals in the Draft Decree

Confiscation of digital assets used in violations

One of the most notable recommendations is to add confiscation of digital assets as an administrative penalty.

Unlike traditional physical assets, crypto assets exist entirely on digital networks. This raises new challenges:

• How should digital assets be seized?

• Which technical standards apply?

• How can authorities ensure transparency and security during confiscation?

Experts argue that without clear rules for on-chain asset handling, enforcement will remain incomplete.

Applying confiscation to intentional violations

Technology firms and policy advisors suggest applying confiscation measures specifically to intentional and repeated violations, especially when financial penalties alone are insufficient.

This approach aims to:

• Reduce incentives for illegal trading

• Prevent repeat offenses

• Align punishment with the economic impact of violations

Closing Legal Gaps in Crypto Enforcement

Recovering illegal profits

Another key recommendation is to require violators to return illegal gains obtained from crypto-related misconduct. This aligns with existing principles in Vietnam’s Law on Administrative Violations.

In practice, this means:

• Returning unlawful profits

• Paying an amount equivalent to the value of assets already disposed of or hidden

• Ensuring no financial benefit remains after enforcement

This measure directly targets profit-driven violations, which are common in speculative markets.

Stronger sanctions for serious organizational violations

For organizations involved in illegal crypto issuance or trading, current penalties may not reflect the seriousness of the offense. Some stakeholders point out that:

• High-value violations can cause systemic risks

• Short suspension periods may be inadequate

• Longer operational bans could improve deterrence

As a result, regulators are considering extending suspension durations for serious violations to better match their impact.

Why These Changes Matter for the Crypto Market

Building trust in a regulated environment

Stronger enforcement doesn’t mean restricting innovation. Instead, it can:

• Improve investor confidence

• Reduce fraud and manipulation

• Encourage compliant businesses to operate transparently

For beginners, clearer rules mean better protection. For experienced traders, it creates a more stable and predictable market environment.

Supporting Vietnam’s broader compliance goals

Enhanced enforcement also supports Vietnam’s commitments to:

• Anti-money laundering (AML)

• Counter-terrorism financing (CTF)

• International cooperation on cybercrime

These efforts are essential for integrating Vietnam’s crypto market into the global financial system.

What Investors and Businesses Should Do Now

As regulations continue to evolve, crypto participants in Vietnam should:

• Stay updated on licensing requirements

• Trade through compliant platforms

• Maintain clear records of transactions

• Understand that intentional violations may soon carry much heavier consequences

At BITGP, we believe that clear rules and fair enforcement are essential for sustainable crypto growth. Stronger deterrence measures, if designed correctly, can help Vietnam unlock the full potential of digital assets—while protecting users and maintaining market integrity.

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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