Vietnam’s Approach to Crypto Sandboxes: Fostering Innovation While Targeting $800 Million in Tax Revenue

Vietnam has emerged as a major force in the global cryptocurrency landscape, attracting both international businesses and regulatory attention. Between 2022 and 2024, the country saw annual crypto inflows exceeding $100 billion, with digital assets held by 21.2% of its citizens. This has positioned Vietnam at the forefront of digital financial innovation. Yet, the lack of comprehensive regulations has left the sector in a legal limbo, intensifying issues like tax losses, fraud, and capital flight to countries such as Singapore Sandbox for digital assets in Vietnam: if not now, when? [ 3 ]. Recent policy shifts, however, indicate a move toward regulated experimentation. In early 2025, the National Assembly introduced a sandbox initiative that specifically covers crypto exchanges and tokenized assets, representing a significant move toward formal oversight of the industry Sandbox for digital assets in Vietnam: if not now, when? [ 3 ].

Bybit, a prominent international crypto exchange, has become a central partner in Vietnam’s regulatory transformation. The Ministry of Finance (MoF) revealed plans to launch a crypto sandbox in collaboration with Bybit, with the goal of piloting regulated trading platforms and

compliance systems for anti-money laundering (AML) and Know Your Customer (KYC) requirements Vietnam’s pilot of crypto trading market - bold step towards global ... [ 4 ]. This project supports Prime Minister Pham Minh Chinh’s call for a comprehensive legal framework for digital assets by the end of 2025, assigning the MoF and State Bank of Vietnam (SBV) to draft the necessary regulations Sandbox for digital assets in Vietnam: if not now, when? [ 3 ]. Deputy Minister of Finance Nguyen Duc Chi highlighted the sandbox’s importance in safeguarding investors and allowing companies to lawfully issue digital assets for capital raising Sandbox for digital assets in Vietnam: if not now, when? [ 3 ].

The regulatory sandbox is intended to encourage innovation while managing potential risks. By permitting firms to test new financial products under regulatory supervision, the framework seeks to promote responsible development and maintain market stability. Previous attempts to introduce sandbox rules over the last five years did not succeed, with the 2024 draft omitting blockchain enterprises. The 2025 proposal, however, adopts a more forward-thinking approach by specifically including crypto exchanges and tokenized assets Sandbox for digital assets in Vietnam: if not now, when? [ 3 ]. This change is crucial for attracting fintech startups, many of which have moved to Singapore due to unclear regulations Sandbox for digital assets in Vietnam: if not now, when? [ 3 ].

Industry and technology analysts point to the sandbox’s potential to elevate Vietnam as a leader in digital finance within the region. By establishing a regulated space for innovation, Vietnam can capitalize on its high crypto adoption rate—currently seventh in the world—to fuel economic progress.

is set to support activities such as initial coin offerings, tokenized securities, and blockchain-driven financial services, opening up global funding opportunities for Vietnamese enterprises Sandbox for digital assets in Vietnam: if not now, when? [ 3 ]. The framework will also include anti-fraud protocols, cybersecurity requirements, and investor education programs to address potential risks Sandbox for digital assets in Vietnam: if not now, when? [ 3 ].

The partnership between the MoF and Bybit highlights the pressing need for clear regulations. With Vietnam’s crypto sector projected to generate over $1.9 billion in revenue in 2025, the sandbox could unlock vast economic benefits while tackling issues like tax evasion and financial crime Crypto Regulations in Vietnam 2025 - Coinpedia [ 5 ]. The government aims to launch the sandbox by mid-2026, aligning with efforts to bring digital asset laws in line with international standards, such as those set by the FATF Vietnam’s pilot of crypto trading market - bold step towards global ... [ 4 ]. Experts estimate that a successful rollout could yield $800 million in annual tax revenue through a 0.1% transaction levy, without negatively impacting market activity Crypto Regulations in Vietnam 2025 - Coinpedia [ 5 ].

Vietnam’s approach to regulation demonstrates a careful yet deliberate strategy. The State Bank of Vietnam, traditionally cautious, is now working with the MoF to strike a balance between financial security and innovation. At the same time, the State Securities Commission is clarifying how tokenized assets fit within securities law, while the Ministry of Justice is working to define digital assets in civil legislation. This multifaceted but coordinated approach underscores the challenges of integrating crypto into Vietnam’s legal system Vietnam’s pilot of crypto trading market - bold step towards global ... [ 4 ].

The ultimate success of the sandbox will rely on its flexibility to respond to changing market conditions. The involvement of Bybit, along with other international exchanges and domestic participants, reflects growing confidence in Vietnam’s prospects as a blockchain center. As the nation transitions from regulatory ambiguity to structured trials, the sandbox is set to draw investment, encourage innovation, and reinforce Vietnam’s standing in the global digital asset sector Sandbox for digital assets in Vietnam: if not now, when? [ 3 ].