Cryptocurrency Exchange: A Golden Opportunity for Vietnam's Economy

Vietnam has the capacity to develop its own cryptocurrency exchange, but should cooperate with major exchanges in the world to take advantage of infrastructure and learn from experience.

Vietnam currently has about 17 million digital asset owners - according to newly released data, ranking 7th globally. In the 2023-2024 period alone, blockchain capital flows into the domestic market exceeded 105 billion USD - a figure that is considered to only reflect the "tip of the iceberg" of potential.

Boost from new legal framework

After the Law on Digital Technology Industry was passed by the National Assembly, expected to take effect from January 1, 2026, ministries and sectors are urgently implementing a plan to pilot a digital asset trading floor and build an International Financial Center. In particular, the Ministry of Finance is drafting a resolution to submit to the Government, proposing to license about 5 trading floors with international connectivity, allowing the buying and selling of popular currencies such as Bitcoin and Ethereum.

Experts assess that this will be an important step, not only legalizing new investment channels but also increasing tax revenue, attracting foreign capital and expanding access to capital for technology startups.

At the talk show "What are the opportunities for cryptocurrency exchanges?" organized by Nguoi Lao Dong Newspaper on August 21, Mr. Tran Xuan Tien, General Secretary of the Ho Chi Minh City Blockchain Association (HBA), emphasized: "The special attraction of blockchain technology lies in its ability to reduce operating costs, cut out intermediaries and especially make transactions transparent. However, for many years, this field in Vietnam has not had a legal corridor, causing the market to be held back and the above figure of 105 billion USD is just the tip of the iceberg."

Experts recommend building a transparent legal framework, along with a strict monitoring mechanism for the cryptocurrency market to protect investors. Photo: TAN THANH

According to Mr. Tien, if there is a legal management tool, measuring the scale of this sector will be more accurate, while strengthening the confidence of both small investors and large investment funds. He cited: "Dubai and Singapore have been very quick in issuing mechanisms for this market. When Vietnam pilots 5 trading floors, the market will become more transparent and have conditions to exploit its real potential."

From a business perspective, Mr. Nguyen The Vinh, CEO of Ninety Eight (formerly Coin98), said that the number of Vietnamese people holding crypto assets has far exceeded the number of stock investors. The appeal of this type of asset lies in the unique combination of finance and technology. Blockchain technology also brings advantages with low transaction costs, high liquidity and global connectivity.

"If going in the right direction, Vietnam can strongly attract foreign investment capital, while creating a financial - technological ecosystem that keeps up with world trends, affirming its position on the international blockchain map" - Mr. Vinh commented.

Transparency and investor protection

Experts agree that for the cryptocurrency market to develop sustainably, transparency and investor protection must be top priorities.

Mr. Huynh Quoc Nam, Business Development Director of OKX Global - one of the major international exchanges, suggested that when the exchange goes into operation, it needs to be transparent from trading volume, liquidity to asset guarantee mechanism. "Previously, a top 2 exchange in the world collapsed just because it used investors' assets to invest elsewhere, leading to insolvency" - he cited.

Mr. Nam emphasized that to avoid a repeat of the above incident, in addition to asset guarantees, there should be additional insurance for investors. There should be a dedicated cybersecurity team and a strict Know Your Customer (KYC) process to identify customers and limit the risk of money laundering or fraud.

According to Mr. Tran Xuan Tien, Vietnam can refer to the model in Korea, where trading accounts are directly linked to banks, ensuring transparent cash flow. Sharing the same view, lawyer Dao Tien Phong, CEO of Investpush Law Firm, said: "Trust and reputation are key factors in trading floor business. Therefore, management agencies need to tighten standards for licensed units. They must have experience, operational capacity and fully meet technical and security criteria".

Mr. Phong informed that in the world, Singapore, Hong Kong (China) or Dubai all apply strict licensing mechanisms for digital asset service providers (VASP), clearly regulating asset custody, account guarantees, minimum legal capital and insurance requirements.

"Vietnam also needs to move towards similar standards, and at the same time require licensed exchanges to have legal entities and a presence in Vietnam for convenient management. The recently issued Law on Personal Data Protection will also be an important foundation to help ensure information security for investors when trading in this market," he assessed.

The CEO of Investpush Law Firm also suggested that Vietnam should open its doors to reputable international exchanges to learn about technology and management mechanisms. At the same time, develop domestic exchanges to manage data and protect investors. "Go fast but there must be a safe buffer through a testing mechanism (sandbox)," he said.

Meanwhile, Mr. Tran Xuan Tien emphasized the time factor. "If we do not open a cryptocurrency exchange in the next 1-2 years, Vietnam will be left behind, but going too fast also has potential risks. Therefore, it is necessary to build a domestic exchange to manage liquidity and data, while allowing international exchanges to participate to ensure competition, learning from the experience of models in Dubai or Singapore" - this expert expressed his opinion.

From a technological perspective, Mr. Nguyen The Vinh affirmed that Vietnam has enough capacity to develop its own cryptocurrency exchange, but should cooperate with large exchanges such as Binance and OKX to take advantage of infrastructure and experience. The most important thing is to do it quickly, if delayed, the opportunity will be lost, while resources are ready.

Develop more services

According to Mr. Huynh Quoc Nam, in order for digital asset exchanges to become part of the international financial center, Vietnam needs to keep up with the constant pace of change in global digital financial products. In addition to basic transactions, exchanges must develop derivative and margin services - which are already very popular in the world but are different from the traditional domestic market.

Mr. Nam believes that implementing sandbox will help investors experience products in a controlled environment, avoiding unfortunate risks.

Source: https://nld.com.vn/san-giao-dich-tien-so-cham-la-co-hoi-troi-qua-196250821212141913.htm