The government has established detailed rules to ensure strong oversight during this period, according to a report by the Government Electronic Newspaper of Vietnam.

The plan, which took effect immediately after being signed by Deputy Prime Minister Ho Duc Phoc, stated that all digital asset activity—whether it involves creating, buying, selling, or using these assets—must occur in Vietnamese dong.

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Only Vietnamese companies can take part in issuing these digital assets. These companies must be officially registered as either limited liability or joint-stock firms under the country’s existing enterprise laws.

The government also stated that digital assets must be backed by physical assets and cannot be linked to money or to securities such as stocks and bonds.

Foreign investors are allowed to participate, but only through service providers that have obtained a license from Vietnam’s Ministry of Finance. This adds another layer of control and ensures that overseas participation goes through approved and monitored platforms.

The pilot introduces strict financial and staffing requirements for companies offering crypto-related services, known as CASPs. These providers must show they have at least 10 trillion dong, about $379 million, in capital.

That money must come from at least two different firms, such as banks, investment companies, insurers, or tech firms, with solid financial histories.

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The group promoted Paynet Coin (PAYN) through two main websites, FMCPAY.com and AFF2024.com. People were told they could earn monthly profits of 5% to 9%, as well as extra payments for bringing in new members.

According to investigators, Nguyễn Văn Hà from Gia Lai Province was the main organizer. Although he had no formal background in technology, he is said to have hired programmers to create the PAYN blockchain, a security system, and a rewards program.

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These features were designed to make the project appear real. The scheme also claimed that PAYN could be used for booking travel and that its exchange was registered in the United States.

To gain trust, the group held large presentations at expensive venues. Police noted that Hà took around $200 million from the scheme. Even after arrests began, money continued to come in from other countries, including India and the Philippines.

The Vietnamese news outlet VnExpress reported that police have frozen or seized about $38 million in cash, foreign currency, and real estate. So far, 20 people have been taken into custody.

Hà, along with his deputy Phan Việt Lập and other members of the group, is facing charges of breaking multi-level marketing laws and using online systems to take money from others.

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The decision follows Prime Minister Phạm Minh Chính’s Directive No. 05, which aims for an 8% or higher growth target by 2025.

Currently, Vietnam has no official recognition of digital assets, which leaves crypto-related businesses in a legal gray area. Despite this, crypto trading remains widespread, with many businesses choosing to register in countries like Singapore or the US to avoid regulatory uncertainty.

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This practice has led to lost tax revenue and disadvantages for local businesses competing with foreign-registered firms.

The Ministry of Finance and the State Bank of Vietnam have been tasked with drafting regulations that will bring more clarity to the industry. Prime Minister Chính emphasized the importance of this step, stating, “The Party has directed, the Government has agreed, the National Assembly has agreed, the People have supported, and the Fatherland has expected”.

Government officials believe that establishing clear rules will provide a more secure environment for crypto businesses. A Ministry of Finance representative stated:

Creating this legal framework will help businesses access bank capital and provide a safer, more transparent environment for crypto transactions.

Vietnam ranks fifth in global cryptocurrency adoption, according to Chainalysis’ 2024 report. The country has also received over $105 billion in blockchain-related investments between 2023 and 2024.

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