Vietnam firms vie for crypto licences as Hanoi plans ban on overseas trading

By Khanh Vu and Phuong Nguyen

HANOI, March 17 (Reuters) - Vietnamese companies are competing to motorboat the country's archetypal licensed cryptocurrency exchanges arsenic the authorities moves to curb trading connected overseas platforms successful ‌one of the world's astir progressive crypto markets.

Hanoi plans to rotation retired a aviator strategy for ‌locally tally integer plus exchanges arsenic soon arsenic this month, according to a authorities solution issued successful February, arsenic portion of a broader effort ​to tighten oversight of crypto trading and superior flows.

Five companies passed an archetypal qualification round, according to a concern ministry papers dated March 12 and reviewed by Reuters this week.

Among them are affiliates of 3 Vietnamese backstage banks - Techcombank, VPBank and LPBank - arsenic good arsenic stockbroker VIX Securities and Sun Group, 1 of Vietnam's largest backstage conglomerates, the papers ‌showed.

Sun Group and VPBank confirmed their licence ⁠applications, portion the different 3 firms did not instantly respond to emailed requests for comment.

A spokesperson for the ministry said authorities were moving connected the substance but would not ⁠comment connected circumstantial applicants.

WORLD'S FOURTH-MOST ACTIVE MARKET

Vietnam has emerged arsenic 1 of the world's astir progressive crypto markets, ranking 4th globally successful past year's Global Crypto Adoption Index compiled by blockchain information steadfast Chainalysis, which estimated transactions involving Vietnamese traders exceeded $200 ​billion successful ​the 12 months to June.

Authorities person grown progressively acrophobic astir ​the usage of cryptocurrencies and stablecoins amid a ‌rise successful popularity regionally, expanding the risks of uncontrolled superior outflows.

The concern ministry is drafting caller rules that would prohibit Vietnamese nationals from trading connected overseas crypto platforms.

Vietnam tightly restricts cross-border superior transfers. With a tiny and underdeveloped firm enslaved marketplace and a banal speech inactive classified arsenic frontier, galore home savers transmission their wealth into golden oregon spot instead.

Gold prices successful Vietnam commercialized astatine a premium of astir 10% to planetary benchmarks, portion the lodging ‌market has been prone to bouts of speculation, highlighting the ​limited concern options disposable to households.

Although determination is nary explicit prohibition connected ​owning cryptocurrencies, integer assets are not recognised arsenic ​money oregon a ineligible means of outgo successful Vietnam. As a result, astir Vietnamese ‌traders presently usage overseas centralised exchanges specified arsenic Binance, ​OKX and Bybit, marketplace participants ​say.

Phan Duc Trung, president of the Vietnam Blockchain and Digital Assets Association, said palmy home exchanges could assistance support transaction fees wrong the state and enactment the improvement of Vietnam's integer fiscal services industry.