Vietnam's 65-35% Capital Rule for Crypto Exchanges 2026: Major Barrier or Essential Investor Shield?

Amid the red-hot crypto investment wave and unforeseen risks, the government's introduction of such stringent capital regulations has forced both the market and investor community to reconsider their positions. Vietnam's crypto market is awaiting a historic turning point, but are these strict capital requirements closing the door on opportunities or providing necessary safeguards for investors?

While Vietnam's crypto community eagerly anticipates legalization from 2026, a crucial detail in the draft Digital Technology Industry Law has caught many by surprise: cryptocurrency service providers must maintain extremely tight capital structures. Specifically, at least 65% of capital must come from institutional investors, with the remaining 35% from major financial institutions (i.e., financial organizations like banks, insurance companies, securities firms).

Are you ready to accept higher costs in exchange for a reputable and secure crypto market?

Why Has the Government Set Such High "Capital Barriers"?

Lessons from Global Collapses

In 2022, the crypto world witnessed a series of "earth-shaking" events: FTX exchange - once the world's second-largest trading platform - collapsed within days, causing millions of investors to lose approximately $8 billion. Previously, Terra Luna and stablecoin UST also "evaporated" $60 billion in just one week.

Ms. Lan, a retail investor in Hanoi, shares: "I lost nearly 200 million dong when UST collapsed. That's when I realized there were no guarantees for my assets on those opaque platforms. If the new regulations help prevent such cases, I'm willing to accept higher fees."

The main causes? Insufficient reserves, poor risk management, and lack of transparency in operations. These bitter lessons prompted Vietnamese policymakers to establish strict capital standards.

Market Psychology and Domino Effects

Mr. Tuan, a finance expert with 10 years of experience at major banks, explains: "The crypto market has special characteristics - when a major exchange encounters problems, the ripple effect can cause the entire market to collapse. Vietnam doesn't want to become an 'experiment' for an unstable market."

The 65-35% regulation not only ensures financial strength but also creates a safety "buffer" when crises occur.

Detailed Analysis of the 65-35% Capital Structure

65% from Institutional Investors: Who Are the Qualified "Big Players"?

According to the current draft law (as reported by the Ministry of Information and Communications), institutional investors include:

• Investment funds with minimum charter capital of 500 billion dong
• Multinational corporations with revenue exceeding $1 billion annually
• Technology companies listed on international stock exchanges

This means only truly "big players" can participate in establishing crypto exchanges in Vietnam. This presents both opportunities and challenges.

35% from Financial Institutions: Bridge to Traditional Banking

The remaining capital must come from:

• Commercial banks with charter capital exceeding 3,000 billion dong
• Class I securities companies
• Insurance companies with owner equity exceeding 1,000 billion dong

This regulation aims to create tight connections between the crypto world and traditional financial systems, reducing risks and increasing credibility.

Real Impact: Opportunities and Challenges Side by Side

Which "Big Players" Are Ready to Participate?

According to investment industry sources, several major corporations have begun studying the possibility of entering Vietnam's crypto market:

Vingroup: With strong financial capacity and fintech experience through VinID, Vingroup is seen as a bright candidate.