Vietnam proposes 0.1% crypto transaction tax and strict exchange licensing
Vietnam’s Ministry of Finance has proposed a tax and regulatory framework for crypto during its five‑year pilot that began in September 2025. Key measures: a 0.1% personal income tax on transaction turnover for trades executed through licensed platforms (applied to residents and non‑residents), continued exemption of crypto transfers from value‑added tax (VAT), and a 20% corporate income tax on net trading profits for companies. Licensing for exchanges opened on 20 January 2026 with steep entry rules: minimum charter capital of 10 trillion VND (~$408m) and a 49% cap on foreign ownership; settlement in Vietnamese dong is mandated during the pilot. The draft mirrors recent legal amendments and awaits public feedback before finalisation. For traders, the low 0.1% trade levy may encourage migration to licensed venues and improve reporting and compliance; however, high capital and licensing thresholds are likely to reduce the number of exchanges, constrain liquidity, and favour larger, incumbent operators — potentially increasing spreads and execution risk on smaller pairs. SEO keywords: Vietnam crypto regulation, crypto tax, exchange licensing, market liquidity, trader compliance.
Neutral
The proposal combines a modest transactional tax (0.1%) and VAT exemption with stringent licensing and capital requirements. The 0.1% levy is low and could be neutral-to-slightly positive for on‑exchange volumes because it encourages migration to licensed venues and formalizes reporting, which can reduce informal OTC activity. That supports market transparency and could attract institutional flows over time. Offsetting this, the very high minimum capital (10 trillion VND) and a 49% foreign ownership cap create significant barriers to entry. Expect fewer licensed exchanges, greater concentration among incumbents, reduced competition, and lower liquidity for niche pairs or smaller tokens. Short term: potential liquidity tightening, wider spreads and higher execution costs on smaller markets (bearish pressure for liquidity-sensitive tokens). Long term: improved compliance and institutional confidence may be supportive, but only if a small number of well‑capitalized exchanges provide deep order books. Overall price impact on the cryptocurrencies traded in Vietnam is likely neutral — positive for regulatory clarity and institutional trust, negative for immediate retail liquidity — resulting in mixed effects that balance out.