# Vietnam’s Bold Move: Taxing Crypto Like Stocks with a 0.1% Levy

**SUMMARY:** Vietnam is set to introduce a comprehensive tax framework for cryptocurrency transactions, aligning them with stock trading. The proposed measures include a 0.1% tax on crypto transfers and a 20% corporate tax on profits for institutional investors. This initiative aims to regulate the rapidly growing digital asset market while imposing strict licensing conditions for exchanges.

## Introduction

In a significant regulatory shift, Vietnam is preparing to roll out a new taxation framework for cryptocurrencies that mirrors the existing system for stock trading. The proposed measures, unveiled by the Ministry of Finance, signal the country’s intention to formally integrate digital assets into its financial ecosystem, ensuring that they are taxed and regulated similarly to traditional financial instruments. This move comes amidst a global trend of increasing regulatory scrutiny over cryptocurrencies, as governments seek to balance innovation with investor protection and tax compliance.

## The Proposed Tax Structure

### Personal Income Tax on Crypto Transactions

The draft policy proposes a **0.1% personal income tax** on all cryptocurrency transactions conducted through licensed service providers. This tax would be applied to the total value of each transaction and is designed to create a parallel with the existing stock trading tax in Vietnam. According to local reports from **The Hanoi Times**, this tax structure aims to simplify the taxation process for individuals engaging in cryptocurrency trading while ensuring that the government can capture revenue from this burgeoning market.

– **Key Points:**
– **0.1% tax** applies to all crypto transfers.
– Tax is levied on the value of each transaction.
– Aligns with existing stock trading tax laws.

### Corporate Taxation for Institutional Investors

For institutional investors, the proposed framework outlines a **20% corporate income tax** on profits generated from cryptocurrency transactions. This tax will be calculated after deducting purchase costs and any related expenses, creating a more comprehensive tax obligation for businesses operating in the crypto space. This structure aims to ensure that companies engaging in digital asset trading contribute fairly to the nation’s tax revenues.

– **Key Points:**
– **20% corporate tax** on profits from crypto transactions.
– Tax calculated post-expenses.
– Targets institutional investors specifically.

## Licensing and Regulatory Framework

### Stricter Licensing Requirements

As part of its effort to regulate the cryptocurrency market, Vietnam’s Ministry of Finance has proposed stringent licensing requirements for firms wishing to operate digital asset exchanges. Companies looking to establish a crypto exchange must have a minimum **charter capital of 10 trillion Vietnamese dong** (approximately **$408 million**). This capital requirement is notably higher than that imposed on commercial banks in Vietnam and far exceeds thresholds in many other sectors.

– **Key Points:**
– **10 trillion dong** minimum capital requirement.
– Higher than the threshold for commercial banks.
– Aimed at ensuring only financially robust entities operate in the space.

### Foreign Ownership Limits

The proposed rules will allow foreign investors to participate in Vietnam’s cryptocurrency exchanges but will cap foreign ownership at **49%** of an exchange’s equity. This provision aims to strike a balance between attracting foreign investment and maintaining local control over the digital asset market.

– **Key Points:**
– **49% foreign ownership cap**.
– Intended to safeguard local interests.
– Encourages foreign investment while protecting domestic players.

## Context: Vietnam’s Cryptocurrency Landscape

Vietnam’s move to regulate cryptocurrency comes as part of a broader global trend where nations are grappling with how to incorporate digital assets into their financial systems. The country has seen a rapid increase in cryptocurrency usage, with many Vietnamese citizens engaging in trading and investing in various digital currencies. However, the lack of clear regulatory guidance has led to concerns regarding investor protection, market manipulation, and tax evasion.

### The Five-Year Crypto Pilot Program

In September 2025, Vietnam launched a **five-year pilot program** aimed at creating a regulated environment for cryptocurrency. However, as of October 6, 2025, the Ministry of Finance confirmed that no companies had applied for participation in the pilot program. The lack of interest is largely attributed to the stringent capital requirements and eligibility conditions, raising questions about the feasibility of the proposed regulations.

– **Key Points:**
– **Five-year pilot program** initiated in September 2025.
– No applications received as of October 2025.
– Concerns over high capital requirements and strict eligibility.

## Implications of the New Tax Framework

### Economic Impact

The taxation of cryptocurrency transactions could have several implications for Vietnam’s economy. By formalizing the tax structure, the government aims to capture revenue from a sector that has grown exponentially in recent years. This could lead to increased public funding and investment in infrastructure and services, benefiting the broader economy.

### Impact on Investors and Businesses

For individual investors, the 0.1% tax on transactions may discourage frequent trading, as the costs can add up quickly. This could lead to a more cautious approach to cryptocurrency trading, potentially stabilizing price volatility. On the other hand, institutional investors may find the corporate tax structure burdensome, which could deter some from entering the market.

### Regulatory Clarity

The introduction of a formal regulatory framework provides much-needed clarity for businesses operating in the cryptocurrency space. This regulatory certainty can encourage more companies to enter the market, potentially leading to increased innovation and competition in the cryptocurrency sector.

## Broader Perspectives on Regulation

While Vietnam’s regulatory approach may be seen as a necessary step toward integrating cryptocurrencies into the financial system, it is essential to consider the broader implications of such regulations.

### Balancing Innovation and Regulation

One of the challenges facing regulators globally is how to strike a balance between fostering innovation in the blockchain and cryptocurrency space while ensuring adequate protections for investors. Overly stringent regulations can stifle innovation and drive businesses to more favorable jurisdictions, while a lack of regulation can expose investors to significant risks.

### International Comparisons

Countries such as the United States, the European Union, and Singapore have adopted various approaches to cryptocurrency regulation. For instance, the U.S. has implemented tax regulations requiring cryptocurrency gains to be reported as capital gains, while Singapore has taken a more hands-off approach, focusing on fostering innovation.

Vietnam’s approach will need to be carefully monitored to ensure it does not drive away investment or stifle growth in a sector that is still evolving.

## Conclusion

Vietnam’s proposed taxation framework for cryptocurrencies represents a significant step toward formalizing the digital asset market within its financial system. By aligning crypto transactions with stock trading regulations, the government seeks to create a more structured environment for investors and businesses. However, the high capital requirements and regulatory burdens may pose challenges for market participants. As the country embarks on this regulatory journey, it will be crucial for policymakers to strike a balance between fostering innovation and ensuring investor protection.

With the right approach, Vietnam could position itself as a leader in the digital asset space, attracting both local and foreign investment while ensuring a fair and equitable taxation system. The future of cryptocurrency in Vietnam is poised for transformation, and the coming years will be critical in shaping the direction of this rapidly evolving market.

Source: https://cointelegraph.com/news/vietnam-crypto-tax-0-1-percent-trading-levy-draft-policy?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound