Vietnam has seen its once-thriving cryptocurrency trade go into decline following the latest market-wide decline in digital belongings. In keeping with experiences, the latest market decline has pressured customers to promote their belongings, with many retail merchants now within the pink.
Vietnam has approached digital belongings cautiously lately, permitting the event of blockchain know-how in a grey space, in contrast to neighboring China, which opted for an outright ban in 2021. Whereas digital belongings are prohibited from getting used as a medium of trade in Vietnam, the federal government permits residents to invest in belongings with out restrictions. The transfer places younger folks on the forefront of cryptocurrency adoption, with an estimated 17 million folks holding digital belongings.
What occurred to Vietnam’s cryptocurrency trade?
Over the previous few months, Vietnam has been making strides within the cryptocurrency trade. In January, the nation introduced that it had begun accepting purposes from firms looking for to function domestically licensed cryptocurrency exchanges. Beneath the licensing framework, candidates will need to have a minimal contributed constitution capital of VND10 trillion ($400 million), amongst different necessities. This licensing program was launched primarily based on a legislation handed by Vietnam’s Nationwide Meeting in June 2025.
However what appeared like a increase within the crypto trade has now changed into a legal responsibility, as buyers are at the moment within the midst of a crypto winter. Bitcoin’s worth has practically halved since hitting a brand new report excessive of greater than $126,000 in October, and different digital belongings have fallen additional. In an interview performed by AFP information company, Hanoi college pupil Hong Le claimed that he had misplaced all his digital belongings. He claimed that his holdings rose to $200,000 however plummeted as a result of decline in Bitcoin and different digital belongings.
Mr. Tran Xuan Tien, Chairman of Ho Chi Minh Metropolis Blockchain Affiliation, spoke concerning the present market state of affairs and stated that many companies have closed down because of the disaster. He added that different firms are additionally downsizing as most of them are searching for funding to increase their runways. His phrases had been echoed by Nguyen The Binh, co-founder of blockchain firm Ninety-Eight, who stated his firm has laid off a few third of its staff since final 12 months.
Trade gamers need plans to assist the sector
Relating to the longer term, Bin added that the corporate is predicted to hold out additional restructuring sooner or later because the outlook for the trade is bleak. “We’d like a back-up plan as a result of the market is prone to stay robust for years, not months.” Till just lately, Vietnam’s cryptocurrency sector was a cautious one, with ventures dealing in extremely speculative belongings and Ponzi schemes thriving alongside firms providing respectable merchandise.
On the time, the Vietnamese authorities warned concerning the risks of cryptocurrencies and went after the perpetrators of a number of large-scale frauds, significantly people who defrauded buyers of greater than $400 million. The nation is at the moment pursuing progress reforms beneath chief To Lam to embrace the blockchain trade and assert management over the $100 billion market. The legislation recognizing digital belongings went into impact final month, however buyers have questioned its implementation.
Bin stated that as a result of trade’s ongoing decline and an unsure authorized framework, most firms have shut down, downsized or moved elsewhere. He additionally added that startups are struggling to achieve traction as buyers are selecting to attend till the market turmoil subsides. Beforehand, buyers had been seduced by the promise of 400% returns, however now they’re disillusioned to listen to that they may lose every thing.
