Vietnam to Limit Foreign Crypto Trades, Boost Domestic Exchanges

Vietnam's government is advancing plans to restrict citizens from trading cryptocurrencies on foreign platforms while fast-tracking the launch of the country's first licensed domestic exchanges, aiming to curb capital outflows in one of the world's top crypto markets.

According to a March 12 document from the Ministry of Finance, five companies have passed an initial qualification round under a pilot program for regulated digital asset exchanges. The approved entities include affiliates of private banks Techcombank, VPBank and LPBank, as well as stockbroker VIX Securities and conglomerate Sun Group. VPBank and Sun Group confirmed their applications, while a ministry spokesperson noted ongoing work in the area without commenting on specific applicants. The pilot, outlined in a February government resolution, could begin operations as early as this month, following applications that opened in January.

The move stems from authorities' growing concerns over unregulated crypto activity, which they link to risks of uncontrolled capital leaving the country. Vietnam ranks fourth globally on Chainalysis's Global Crypto Adoption Index, with traders handling more than $200 billion in...