Bitcoin as a Payment Method in Vietnam
Vietnam’s laws do not permit Bitcoin (or any cryptocurrency) to be used as a means of payment. The State Bank of Vietnam (SBV) – the nation’s central bank – has repeatedly affirmed that cryptocurrencies are not legal tender or a lawful payment instrument in Vietnam . In 2017, SBV officially declared that the issuance, supply, or use of Bitcoin and similar virtual currencies as a payment method is prohibited . This position is backed by regulations: under Vietnam’s non-cash payment decree, any means of payment not expressly authorized by the SBV (e.g. bank checks, bank cards, etc.) is deemed an “illegal means of payment” .
Using Bitcoin for goods or services can incur severe penalties. Since January 1, 2018, those who use or allow cryptocurrency as payment face administrative fines from 150 to 200 million VND (approximately USD $6,500–$8,800) . In serious cases, criminal prosecution is possible under the amended Penal Code for the act of issuing or using “illegal payment instruments” . For example, when a Vietnamese university in 2017 announced it would accept Bitcoin for tuition, the SBV intervened and warned that this would violate the law; the university quickly dropped the plan to avoid sanctions . In summary, Bitcoin is not legally accepted for payment in Vietnam, and transacting with it as money is unlawful and punishable.
Legality of Trading, Investing, and Holding Bitcoin
Owning or trading Bitcoin in Vietnam is not explicitly banned for individuals, but it has existed in a legal grey area. Vietnamese law (until recently) did not recognize cryptocurrencies as currency, legal tender, or as a financial asset . Notably, possession of cryptocurrency is not a crime – the prohibition applies only to using crypto as payment . This means individuals have been able to buy, sell, or hold Bitcoin at their own risk, but such activities have had no legal protection or official oversight . Authorities have repeatedly warned the public that investing in crypto is risky and that there are no legal safeguards if things go wrong . Indeed, over the past years millions of Vietnamese citizens have actively traded crypto (Vietnam ranks among the top countries in crypto adoption), but all of this took place in an unregulated space without investor protection . If someone was defrauded or lost access to their Bitcoin, they historically had little recourse since the law did not acknowledge crypto as property. For instance, in one court case a taxpayer’s income from Bitcoin trading was initially taxed by authorities, but a provincial court overturned the tax, ruling that Bitcoin was neither a recognized currency nor a commodity under law – hence not taxable under existing regulations . This exemplified the legal ambiguity: Bitcoin was not outlawed to own or trade, but it also wasn’t legally recognized as an asset or foreign currency, leaving investors in a gray zone.
Institutions and banks, on the other hand, have faced strict limitations. The SBV has prohibited credit institutions and payment service providers from dealing with cryptocurrencies. In April 2018, following a Prime Minister’s directive, the central bank issued an order to banks and payment companies to step up control and prevent any cryptocurrency-related transactions . This means Vietnamese banks cannot offer crypto accounts or facilitate Bitcoin trading, and no domestic fund or financial firm is officially authorized to invest in Bitcoin. There have also been periods of tighter enforcement – for example, in mid-2018 regulators moved to suspend the importation of crypto mining equipment to curb speculative fever and illegal uses. However, simply holding or trading Bitcoin by individuals (for example, on foreign crypto exchanges) has not been criminalized. Many Vietnamese have continued to buy/sell crypto on peer-to-peer markets or international platforms, albeit entirely at their own risk and outside any regulated framework .
Recent changes in law (in 2025) are set to give clarity to the status of crypto holdings. In June 2025, Vietnam’s legislature passed a new law that for the first time defines and recognizes digital assets, including cryptocurrencies, as a form of property (effective January 1, 2026) . Under this Law on Digital Technology Industry, Bitcoin and other “crypto assets” are legally acknowledged as an asset class. This implies that individuals can legally own, invest, transfer, gift, or inherit Bitcoin with recognition under civil law, similar to other assets . Going forward, investors should gain legal protections (and obligations such as taxation) when dealing with crypto. It’s a significant shift from the prior vacuum – transitioning Bitcoin from an unofficial, unrecognized status toward a regulated asset in which Vietnamese can lawfully invest. That said, even under the new law, Bitcoin is recognized as property, not as legal money, so its use in commerce will remain restricted to lawful asset trading, not payments.
Regulations for Businesses and Crypto Services in Vietnam
Until now, Vietnam has had no specific legal licensing or regulations for cryptocurrency businesses such as exchanges, trading platforms, or crypto payment services. No company could legally register as a “crypto exchange” or brokerage under Vietnamese law, because crypto activities were not covered by existing financial laws. In fact, past government directives effectively dissuaded any organized crypto business: authorities warned companies and securities firms against launching token issuance or crypto investment products, especially after some large ICO scams affected Vietnamese investors in 2018 . The result was that any crypto-related businesses have been operating in a legal gray zone. Domestic startups in the crypto space either had to focus on blockchain technology projects (without dealing in tokens) or base their operations offshore. Vietnamese users have accordingly relied on foreign platforms (like Binance, Huobi, etc.) to trade cryptocurrencies, since no Vietnam-based exchange has been officially permitted . For example, by 2023 Vietnam was among the top users of Binance globally, precisely because local alternatives were absent and unregulated .
Businesses in Vietnam also face strict rules if they attempt to use or accept crypto. A Vietnamese business cannot legally accept Bitcoin as a payment for goods/services (as noted, that would violate payment laws). Companies are also forbidden from advertising or conducting multi-level marketing involving crypto tokens (a measure taken to crack down on Ponzi schemes). The State Securities Commission in 2018 ordered public companies and funds not to engage in issuing or transacting cryptocurrencies, following a Prime Minister’s directive to guard the financial system from crypto risks. In summary, until recently there has been no lawful way to integrate Bitcoin into a business’s operations (except perhaps holding crypto as an informal investment on the side, which was not regulated). Any ventures like crypto ATMs, crypto investment funds, or local exchanges have either been shut down or operated unofficially at risk of legal action.
However, a regulatory framework for crypto businesses is now on the horizon. The new Law on Digital Technology Industry (June 2025) explicitly calls on the government to devise regulations for the “business conditions and management” of digital assets services . In other words, Vietnam is preparing to legalize and supervise certain crypto-related business activities via detailed implementing rules. In late June 2025, the National Assembly urged the government to “pilot” a crypto asset market, meaning a controlled rollout of licensed exchanges and related services . The Ministry of Finance and the SBV are currently drafting guidelines for this pilot regime . Early indications suggest the rules will be quite strict: a draft proposal would require any crypto exchange operator to have at least ₫10 trillion (approximately USD $400 million) in charter capital, and this capital must come largely from regulated financial or tech institutions (individuals cannot directly start a crypto exchange under the proposed rules) . These hefty requirements mean only well-established, well-capitalized companies (such as banks, securities firms, or large tech firms) could enter the crypto exchange business in Vietnam. The forthcoming regulations are also expected to impose anti-money laundering (AML), consumer protection, and cybersecurity standards on crypto service providers . This push aligns with international standards – Vietnam has been under pressure (including from the FATF) to supervise virtual asset markets more closely . In summary, as of 2025 no crypto business licenses exist yet, but Vietnam is actively building a legal framework. Businesses dealing with Bitcoin should expect strict licensing requirements and compliance obligations once the new regulations take effect (likely starting in 2025–2026). Until then, any crypto-related business activity remains technically unauthorized.
Recent Legal and Regulatory Developments
Vietnam’s stance on Bitcoin has evolved over the past decade, especially in response to the booming crypto market and associated risks. Below is a timeline of key legal developments and official statements by Vietnamese authorities regarding Bitcoin and cryptocurrencies:
- February 27, 2014: The State Bank of Vietnam issued a notice stating Bitcoin and other virtual currencies are not recognized as legal currency or payment in Vietnam . Banks and credit institutions were warned not to treat them as legitimate payment instruments.
- August 21, 2017: Prime Minister Nguyễn Xuân Phúc signed Decision No. 1255/QĐ-TTg (2017), approving a plan to study and build a legal framework for “virtual assets, digital currencies, and virtual currencies.” This launched a government project to understand crypto and propose appropriate regulations.
- July 21, 2017: The State Bank (SBV) issued Official Letter No. 5747/NHNN-PC to the Government, declaring that Bitcoin, Litecoin, and similar cryptocurrencies are not lawful means of payment in Vietnam . It emphasized that issuing, using, or supplying cryptocurrency as money is prohibited and would be subject to sanction. (This letter essentially set the stage for the later public ban on using crypto as payment.)
- October 2017: The Government clarified the legal ban on crypto in payments. Decree 80/2016/ND-CP (amending the earlier Decree 101/2012 on non-cash payments) was cited to underline that any payment instrument not issued or regulated by the SBV is illegal . Around the same time, Decree 96/2014/ND-CP was invoked to impose fines of 150–200 million₫ for using illegal payment methods (like Bitcoin) . The SBV issued a public statement (October 28, 2017) affirming that cryptocurrency use in payment is banned, and warned that from January 1, 2018, violations could even trigger criminal charges under Article 206 of the 2015 Penal Code (amended 2017) . Notably, SBV also made it clear that activities such as initial coin offerings (ICO), the creation of new cryptocurrencies, or any substitution of Vietnam’s currency with crypto are illegal . (These measures were publicized after incidents like an attempt by FPT University to accept Bitcoin sparked debate, which SBV quickly quashed.)
- April 11, 2018: Directive No. 10/CT-TTg was issued by the Prime Minister, ordering stricter control over Bitcoin and other cryptocurrency activities . It tasked ministries (Finance, Public Security, Information & Communications, Justice) and the central bank with preventing and strictly handling illegal crypto-related transactions, amid concerns about scams and investor losses. In response, on April 13, 2018, the SBV issued Directive 02/CT-NHNN to all banks and payment service providers, requiring them to increase oversight and refuse transactions related to cryptocurrencies . Around this period, Vietnam’s authorities also moved to suspend the import of crypto mining rigs and warned companies not to partake in cryptocurrency issuance or investment, aiming to stifle nascent crypto businesses that were not under any supervision.
- March 2021: Vietnam’s Ministry of Finance (MOF) announced it had formed a special research group on virtual assets and currencies to study the crypto market and propose regulatory policies . This indicated the government’s recognition that a more permanent regulatory approach was needed, rather than outright bans alone.
- June 15, 2021: The Prime Minister issued Decision No. 942/QĐ-TTg, approving a national e-Government development strategy. Notably, this strategy directed the State Bank of Vietnam to research and pilot the use of a blockchain-based “virtual currency” from 2021 to 2023 . Although the decision’s wording was vague, officials clarified it referred to a potential central bank digital currency (a “digital VND”) rather than legalization of private cryptocurrencies . Still, it showed the government’s growing openness to fintech innovation.
- March 23, 2022: Deputy Prime Minister Lê Minh Khái issued an official notification instructing relevant ministries to expedite the development of a legal framework for digital assets and cryptocurrencies . He assigned the Ministry of Finance to lead this effort, coordinating with the Ministry of Justice, Ministry of Information & Communications, and SBV. The ministries were told to identify what laws needed amending or new provisions, in line with the roadmap set by Decision 1255 (2017) . This high-level push in 2022 was a response to the crypto market’s growth and was aimed at filling the regulatory gap.
- Late 2022 – 2023: Despite the work in progress, as of 2023 Vietnam still had no comprehensive crypto regulations. International bodies took note. In 2023 the Financial Action Task Force (FATF) placed Vietnam on its “grey list” for heightened monitoring regarding anti-money laundering, partly because Vietnam lacked clear rules for virtual assets . This external pressure added urgency for Vietnam to regulate crypto transactions (to combat money laundering and terrorist financing risks). During this time, Vietnamese officials continued public warnings about crypto frauds – given Vietnam’s high crypto usage, scams were on the rise, reinforcing the government’s cautious stance.
- June 14, 2025: A major turning point – Vietnam’s National Assembly (parliament) passed the Law on Digital Technology Industry, which officially legalizes and defines digital assets, including cryptocurrencies, in Vietnamese law . Under this law, “crypto assets” are defined as one category of digital assets that use cryptography or digital technology for their creation and transactions . This is the first law in Vietnam to acknowledge cryptocurrency as a type of asset. It authorizes the government to promulgate detailed rules on how these digital assets will be managed, how transactions can occur, and how to protect users . The law is comprehensive for the tech sector at large (covering AI, Big Data, etc. in addition to blockchain), and it takes effect on January 1, 2026 . Its passage was seen as Vietnam moving from a completely unregulated approach to a proactive regulatory framework for crypto.
- June 27, 2025: The National Assembly followed up with a Resolution urging quick implementation of the new law in the crypto sector. Parliament called on the government to “soon introduce a comprehensive legal framework to pilot the operation of a crypto asset market” in Vietnam . In practice, this means setting up pilot regulations or sandbox programs for cryptocurrency exchanges and trading under state supervision. By this date, it was public knowledge that the Ministry of Finance and SBV were already drafting regulations for cryptocurrencies, and the legislature’s resolution pressed them to finalize it promptly . Officials have indicated that after the pilot and further refinement, Vietnam could fully integrate regulated crypto trading into its financial system, while ensuring compliance with safety and AML standards.
Overall, these developments show an evolution from a blanket ban on crypto in payments (2014–2018) toward a more nuanced, regulated acceptance (2022–2025). The latest laws and resolutions in 2025 mark the beginning of a legal crypto market in Vietnam – albeit a tightly controlled one – contrasting with the previous years of legal uncertainty.
Government Attitude Toward Cryptocurrencies and Blockchain
The Vietnamese government’s attitude toward Bitcoin and other cryptocurrencies has been cautious and protective, yet increasingly pragmatic in recent years. Officially, the government has never endorsed cryptocurrency as a legitimate currency – on the contrary, agencies like the SBV have consistently opposed treating Bitcoin as money, citing concerns over financial stability and consumer protection. The tone from authorities has often been skeptical: they frequently warn citizens about the dangers of cryptocurrency speculation, fraud, and volatility . Vietnamese regulators have been motivated by incidents of scams and ponzi schemes that cost local investors dearly. For example, by 2018 there were notorious fraud cases (e.g. fake ICO projects) that heightened the government’s alarm. This has led to a generally risk-averse stance: officials stress that crypto is “full of pitfalls, from money laundering and cyberattacks to pricing uncertainties,” and that strict oversight is necessary . Even the 2025 pilot approach is being designed conservatively, with experts and regulators advocating strong safeguards during the initial phase . The State Bank and law enforcement have also framed the crypto ban in payments as a way to protect Vietnamese consumers from speculative losses .
At the same time, Vietnam’s government does recognize the potential benefits of blockchain technology and even the economic opportunities of digital assets. This is reflected in several ways. First, Vietnam has shown openness to blockchain innovation: in 2022, the government endorsed the establishment of the Vietnam Blockchain Association, the country’s first official organization for blockchain tech enthusiasts, businesses, and researchers . This association, approved by the Ministry of Home Affairs, is tasked with promoting blockchain applications and advising the government on appropriate legal frameworks for the industry . Its creation signaled that Vietnam wants to foster the development of blockchain tech (for uses like supply chain, fintech, etc.) even if it was wary of cryptocurrencies initially.
Moreover, high-level statements in recent years hint that the government does not want to “miss out” on the digital asset revolution, provided it can be tamed. Cryptocurrency and digital assets were officially classified as a strategic technology sector in 2025 – the Prime Minister’s Decision 1131/QĐ-TTg (June 2025) put blockchain-based assets in the category of national “strategic, high-tech products” . This unusual move essentially acknowledges that crypto and blockchain could be part of Vietnam’s digital economy future. Similarly, the government’s direction to explore a central bank digital currency (CBDC) (as seen in 2021’s Decision 942) shows an interest in leveraging cryptocurrency technology for a state-controlled digital money . Officials have commented that Vietnam aims to study both the risks and the potential economic uses of virtual currencies, striking a balance between innovation and control .
In summary, the general attitude of Vietnamese authorities is one of cautious engagement. They remain firm that Bitcoin will not be a legal payment medium (only the Vietnamese đồng is recognized for that), and they crack down on illicit or uncontrolled uses of crypto. On the other hand, they are gradually embracing a regulated approach: acknowledging citizens’ strong interest in crypto, seeking to harness it for innovation and revenue (e.g. taxation), and encouraging blockchain technology growth. Recent comments by officials reflect this duality. For instance, the head of Vietnam’s Securities Commission noted the huge public demand for crypto and suggested that with a proper legal framework, the crypto market could develop in a way that creates new investment channels and tax revenue for the state . The government’s decision to legalize digital assets and roll out a sandbox for exchanges demonstrates a shift from outright prohibition toward managed inclusion.
In practice, this means Vietnam’s government supports blockchain as a technology and is willing to allow cryptocurrencies to exist as a regulated asset class – but on its own terms. The emphasis is on reaping the benefits of innovation (digital business growth, financial inclusion, tech sector development) while minimizing risks like fraud, illicit finance, and destabilizing speculation . Until the new regulations are in place, the tone remains conservative: Vietnamese officials continuously advise people to be careful with crypto. But there is a clear trajectory: Vietnam is moving to integrate cryptocurrencies into its legal system in a controlled manner, rather than banning them outright. As of 2025, one could characterize the government’s attitude as “open but wary” – open to the blockchain and digital asset economy as part of the country’s future, yet extremely wary of the pitfalls and determined to keep cryptocurrencies on a tight regulatory leash.
Sources: Official Vietnamese government and central bank statements and regulations, as cited above , along with analyses from legal experts and reputable news outlets for context . These provide the basis for the legal status and recent developments regarding Bitcoin in Vietnam.