Global crypto exchanges may see outflow of Vietnamese investors with new local rules

[HO CHI MINH CITY] Vietnam’s recent rule barring domestic crypto holders – estimated to be more than 17 million – from trading crypto assets outside authorised entities could prompt the outflow of millions of Vietnamese users from global exchanges such as Binance and Bybit, warned analysts.

Under a new government resolution effective from Tuesday (Sep 9), domestic crypto holders will face administrative penalties or criminal prosecution for trading crypto assets without going through licensed service providers, depending on the severity of the violation.

Enforcement will begin six months after the first of the five planned licences is granted, as part of the five-year pilot roll-out of Vietnam’s crypto trading market.