Vietnam’s New Legal Framework Paves the Way for Crypto Market Growth
Beginning in 2026, a new legal framework will allow domestic enterprises to officially participate in Vietnam’s rapidly expanding cryptoasset market. Bach Nghiem, co-founder of the Vietnamese-developed crypto exchange ATX, is highly optimistic about the ability of local exchanges to compete on an equal footing with their international counterparts. Despite early advice to focus on foreign markets—a path successfully taken by other Vietnamese tech firms like Kyber and Sky Mavis—ATX has remained steadfast in its commitment to the domestic market. Nghiem views the new legal landscape as a key opportunity, recognizing that while Vietnam may face disadvantages in many traditional industries, the emerging field of blockchain technology offers a level playing field globally. This new optimism is bolstered by recent legislative developments in major markets like the U.S. and the European Union, which have established comprehensive regulatory frameworks for digital assets. The recent passage of Vietnam’s Digital Technology Industry Law, effective in 2026, officially recognizes digital assets and cryptocurrencies as legitimate, which is expected to provide a robust regulatory framework to encourage innovation. Since September 2024, ATX has already witnessed its user base multiply by seven to eight times, and Nghiem anticipates that this growth will accelerate significantly once digital assets are officially licensed for trading, drawing in a substantial surge of new capital.
Favorable Market Conditions and a Risk-Tolerant Investor Base
According to Bach Nghiem, cryptoasset investors in Vietnam possess several unique advantages compared to their regional peers. While the sheer scale and purchasing power of the Vietnamese market are already comparable to other countries in the region, its high mobile device and internet penetration rates—88.7% and 79% of the population, respectively—are particularly noteworthy. This widespread connectivity makes digital assets highly accessible to almost anyone with a phone and internet connection, fostering broad participation. Furthermore, Nghiem observes that trading behavior in Vietnam often favors high-risk products, a characteristic common in many of the region’s fast-growing economies. From the perspective of a company that develops innovative products, this willingness to experiment and experience new technologies makes Vietnam a particularly high-potential market for cryptocurrency development. While it is difficult to accurately verify the number of crypto investors due to the ease with which individuals can create multiple wallet addresses without identity verification, the scale and level of participation in Vietnam are undoubtedly significant. This widespread adoption of digital assets is expected to make Vietnamese consumers more willing to embrace future blockchain products, which offer substantial advantages over traditional finance in terms of transparency, transaction speed, and global accessibility.
Navigating Regulatory Hurdles and Future Formalization
ATX is actively positioning itself to leverage the upcoming legal momentum to expand and formalize its presence in the domestic market. Currently, the company is registered overseas and operates in Vietnam as a technology firm because the country does not yet have a specific industry code for digital asset exchange activities. As a result, its operations are conducted through a partnership with another entity, without a domestic exchange license. Despite this, ATX’s recent growth has been impressive, reaching a milestone of 100,000 new accounts in just the past month, with approximately 90% of its 1.3 million users based in Vietnam. This remarkable growth demonstrates the company’s strong connection to the local customer base and fuels its eagerness to find a suitable policy framework that would allow it to officially return to the country. A major advantage for companies like ATX is the Vietnamese government’s relatively innovative mindset, which, rather than monopolizing management, is empowering the private sector to take responsibility for market development. Moreover, forthcoming regulations on shareholder structure, which may require a minimum number of financial institutions or tech corporations as shareholders, will create a mechanism for risk allocation and encourage collaboration among multiple large enterprises, fostering the formation of joint ventures eligible for future licensing.
