Vietnam Establishes Local Crypto Exchanges to Regulate Growing Market

Vietnam is taking steps to establish local cryptocurrency exchanges, aiming to regulate the country's growing crypto market and reduce reliance on offshore platforms.

The move is part of a broader effort by Hanoi to control capital flows and address concerns about the use of cryptocurrencies in the country. According to officials, the heavy adoption of crypto and stablecoins has weakened control over capital flows and driven up gold prices above global levels.

Five companies have cleared an initial screening round for licenses to operate local cryptocurrency exchanges, including affiliates of three private banks and other conglomerates. The government is planning a pilot program for locally run digital asset exchanges, which could be rolled out as early as March this year.