Are Crypto Exchanges Legal In Vietnam
At the time of writing, Vietnamese law does not recognize Bitcoin and other cryptocurrencies as legal means of payment.
However, there is no rule forbidding the investing or trading of digital assets. As such, crypto exchanges can operate in Vietnam without any restrictions at present.
That being said, the government of Vietnam is in the process of developing a regulatory framework for cryptocurrencies. This will lay out ways for taxation on digital assets, as well as compliance guidelines for crypto exchanges wishing to operate in the country.
Top Reasons Why Vietnam Ranks #1 For Crypto Adoption
Getting reliable data on why Vietnam is so popular is difficult. Based on our discussions with crypto-users in Vietnam, we have heard the following reasons :
- There is limited access to traditional investment vehicles and asset-classes in Vietnam.
- Vietnam has a large under-banked population and ATMs are rare in rural areas.
- Almost all older Vietnamese use to trade and hoard gold, but not the younger generation.
- Crypto presents an venue for getting money out of Vietnam and out of the Vietnamese dong, which has historically suffered large devaluations.
- Historical experiences with government-sanctioned collectivization of private property.
- Global remittances, with large expat communities and migrant-worker communities in the USA, Europe, Australia, Canada, Korea and elsewhere.
What is conspicuously missing in the above reasons is buying and selling goods via cryptocurrencies. Some gift-card platforms exist which accept crypto, but, on the street-level, there is very little evidence that Vietnamese are using crypto day-to-day for buying and selling goods.
In fact, physical cash is still the #1 way people transact in Vietnam, with digital payments and credit-cards still relatively rare .
Bitcoinvn Best Platform For Bitcoin To Fiat Conversion
BitcoinVN is a local crypto exchange that allows users to buy Bitcoin in Vietnam. The platform is remarkable for its rapid exchange capabilities, which allow users to exchange crypto for fiat within minutes.
This exchange does not require new users to register for an account. Users can easily exchange fiat for crypto without providing their personal details. However, higher volume trades will require new users to complete the know-your-customer process to unlock the full features of the exchange.
BitcoinVN supports 36+ digital assets. The exchanges fees are based on the digital asset in question. For instance, the exchange of BTC is pegged at 1% while Ether is higher at 1.5%. Supported payment methods include bank wire transfers, fiat deposits through cards, and crypto-to-crypto transfers.
Cryptoassets are a highly volatile unregulated investment product.
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Vietnam Is Ahead Of The Crypto Curve
Within ChainAnalysis 2021 global crypto report, the company crowned Vietnam as the number one country for adoption. The report aims to measure how far cryptocurrency is spreading throughout its citizens, ignoring all other areas in the industry such as mining power or legal status.
It considers just three metrics: on-chain cryptocurrency value received, on-chain retail value transferred, and peer-to-peer exchange trade volume, and uses them to rank each country within its adoption index. Vietnam performed well in each of these metrics, leading to its perfect 1.00 score on the index.
Following Vietnam is India, gaining a 0.37 on the index, and Pakistan, gaining 0.36. For context, the United States scored 0.22, putting it in 8th place, beaten by Venezuela in 7th place with a 0.25 score.
Moving over to Finders data, published just several days beforehand, Vietnam came out on top for its amount of crypto owners, reaching 41%. Indonesia came in second place with 30%, tying with India, which also had 30%. The United States was ranked second-last with only 9% of its citizens owning crypto, and the United Kingdom coming in at the bottom with 8%.
With Vietnam, India, and Indonesia all fairing well, this means Asia is leading the charge in crypto adoption among its people. However, bear in mind that Finders report only examined 27 countries, whereas ChainAnalysis examined 154.
How Can You Invest In Vietnam With Etfs
The easiest way to invest in Vietnam is by using exchange-traded funds . These provide instant diversification in a single U.S.-traded security. The VanEck Vectors Vietnam ETF is the most popular fund for investors looking for exposure to the country. It has $533.6 million in assets under management. It also has a modest net expense ratio of 0.61% as of July 2021.
The VNM ETF offers exposure to publicly traded companies that are primarily based and listed in Vietnam or make at least 50% of its revenues there. The current fund holds more than 37 different companies. It consists of 28% real estate, 10% IT, 16% consumer staples, as well as other sectors.
This is one of the only ETFs offering exposure to Vietnam. But be aware that the fund is heavily weighted in mid-cap and small-cap stocks . If you invest, you could come across greater volatility than larger blue-chip equities.
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How To Buy Dogecoin In Vietnam
Thanks to Tesla founder Elon Musk, Dogecoin a coin that started as a meme about the shiba inu doghas recently become a popular digital currency. Below you can find crypto exchanges in Canada that allow you purchase Dogecoin.
- Exchanges in Vietnam that Support Dogecoin
- Bitcoin Vietnam
- Supports Dogecoin buying & selling
About Dogecoin: Dogecoin has become one of the most famous altcoin blockchains. Dogecoin was founded by Jackson Palmer and Billy Markus on December 6, 2013. Thanks to its popularity on Robinhood, it hit an all time high of $0.42 on April 20. Doge started the year at under $0.01 USD. It is an open source blockchain, meaning its code is publicly available for anyone to see.
Buy Bitcoin Using A Credit/debit Card
Buying bitcoin and other cryptocurrencies using a credit or debit card is easy and efficient. Assuming you have created an account on your favorite crypto exchange platform you can follow these steps:
- Go to the Fiat Deposits or Deposits section in your account and select Payment Methods.
- Fill up the blanks with your credit/debit card details.
- Enter the amount you wish to transfer and submit.
After having the fiat money deposited to your account you can click Buy Bitcoin. Following that, your Bitcoin will be sent to your wallet! At this moment, most exchanges accept Visa and MasterCard credit and debit cards.
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Verify Your Trading Account
To verify your identity during sign-up, simply upload your government-issued ID and utility bill . If you provide the right documentation, your account will be confirmed by eToro in less than 15 minutes and it will be ready to be funded with fiat in order to be used in buying and trading Bitcoin or other cryptocurrencies.
Islamic Accounts In Vietnam
Vietnam brokers support Islamic accounts or swap-free accounts.Vietnam Islamic accounts have no rollover interest on overnight positions tocomply the Muslim faith. Traders of Islamic faith are forbidden to pay interest.Brokers in Vietnam offer accounts that are suitable for Islamic traders.These Vietnam brokers complies with Sharia law.
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Follow These Steps & Learn How To Easily Purchase Bitcoin In Vietnam Safely
Choose your pick from our list of Top crypto exchanges in Vietnam. Remember to use links from this website to make sure you don’t end up on scam / phishing websites.
Register on the exchange and go through the KYC process. The most popular exchanges use automated Know Your Customer services.
Deposit fiat & buy bitcoin
Deposit your fiat currency.Depending on the payment method this step can take minutes, all the way up to 5 business days .Choose debit or credit card payments if you want to skip the funding process and are willing to pay a bit more in fees. Otherwise, once the money hits your account you are free to purchase BTC.
How To Find Crypto Exchanges Vietnam
When youre looking for the best exchange in Vietnam, its a good idea to focus your research on the important topics both from cryptocurrency and trading aspects. Here are the major areas we believe a great cryptocurrency exchange platform should successfully cover:
Safety and Trust
Regardless of your location, blockchain technology encrypts your digital funds in a way that no hacker has been able to tamper to date. While public ledger is visible to the whole world any bad actor needs to have the password or keys to be able to make transactions through your funds. As long as youre careful not to share your password or recovery key with anyone and keep your computer secure your funds should be safe on the blockchain.
Additionally, the law in Vietnam doesnt ban the purchase of crypto but bans its usage as a currency in the exchange of goods and services. In addition, as part of a broader economic upheaval, the new law is expected to tax Bitcoin assets in Vietnam, and you must pay what you are owed.
Payment Options: Bitcoin and other cryptocurrencies are also available to purchase in Vietnam via online exchanges, peer-to-peer exchanges, and Bitcoin ATMs. Each option comes with its list of pros and cons, and first-time cryptocurrency buyers must decide on how to engage with the Bitcoin community. Although P2P exchanges have some global popularity, crypto exchanges provide a very convenient and efficient experience when it comes to trading crypto.
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Vietnam Leads Cryptocurrency Adoption
In the last few days, its been hard to ignore the fact that Vietnam leads the world in cryptocurrency adoption. A survey by US-based consultancy Finder found that of survey respondents 41% of those based in Vietnam had invested in cryptocurrency, with 28% of the total investing in Bitcoin. It would seem, therefore, that Vietnam leads cryptocurrency adoption despite the fact that cryptocurrency is not a legal means of payment in the country.
Why is Vietnam a Leader of Cryptocurrency Adoption?
According to the VN Express article, one of the main reasons that Vietnam has such a high rate of cryptocurrency adoption is that it offers a method for remittances to be sent from overseas Vietnamese to their families in Vietnam without facing the stiff exchange rates or transaction fees associated with traditional financial transactions.
There are a couple of reasons why I dont buy this explanation.
First, the gap between men and women who hold cryptocurrency assets was highest of any surveyed country in Vietnam. While this could be representative of the Confucian hierarchical family structure, one would think that if cryptocurrency were used as a means of sending remittances to the country then more women would hold cryptocurrency as the recipient of remittances sent by men and other family members overseas.
Why do I think Vietnam leads cryptocurrency adoption?
There are a few more plausible reasons for Vietnams placement at the top of Finders poll .
How To Buy Bitcoin In Vietnam
There are two main methods for those who wish to purchase Bitcoin in Vietnam, and the one you use will depend on your preferences and reasons for buying. If you want to buy BTC online, VND is accepted in some places but not all.
The two options are to buy as a CFD, or to buy directly from cryptocurrency exchanges. Each has its own pros and cons, which will be covered in the next section.
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Blockchain For Vietnams Cashless Society
The deputy Prime Minister of Vietnam, Vuong Dinh Hue signed out a policy decision in 2017, setting out the governments plan to reduce the cash transactions in the country to less than 10%. The State Bank of Vietnam also announced the development of $700 million cashless payment network in collaboration with South Korean payment service provider Alliex.
Another bank, Tien Phong Commercial Joint Stock Bank moving one step further in the use of blockchain technology, joined hands with Japans SBI Ripple Asia to develop Ripplenet blockchain-based global payment network for processing cross-border transactions.
Launch of the First Money Transfer Servicebetween Japan and Vietnam that Utilize Distributed Ledger Technology TPBank is the latest financial institutionsupported by SBI Ripple Asia to leverage Ripple
Is Bitcoin Legal In Vietnam
The regulatory situation around bitcoin and other cryptocurrencies in Vietnam is rather complex. There have been rumors of everything from digital currency bans to a complete embrace of bitcoin over the years, but neither of these extreme positions are actually true.
The most notable form of cryptocurrency regulation in Vietnam is that its actually illegal to use any form of cryptocurrency as a payment mechanism. While it is completely legal to trade cryptocurrencies or hold bitcoin as a long-term investment, the Vietnamese government does not want to allow any other currencies or assets to compete with the Vietnamese dong as the main form of currency in the country. Those who are found to use bitcoin or any other cryptocurrency as a form of payment within Vietnam can face a fine of up to 200 million Vietnamese dong, which is worth around $9,000.
The Vietnamese government has been looking at various regulations they could implement around Bitcoin since at least 2017, but they have yet to pass serious legislation regarding cryptocurrencies. In 2020, multiple regulatory agencies joined a research group put together by the Vietnamese Finance Ministry to figure out the specific regulations that should be put in place around the cryptocurrency industry.
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Commodity Trading In Vietnam
In Vietnam commodity trading includes the trade in precious metals,energies and agricultural commodities.
Some commodities like metals are seeing exponential growth in Vietnam since 2002.
Fast growing countries like China and India have been growing rapidly over the last 3 decades. This has meant that countries like China and India have a vast requirementfor many basic commodities and raw materials for their populations. Crops to feed people and metal to build infrastructure for example.This means countries like Vietnam are able to take advantage of this demand.
We list brokers that allow you to .
How To Buy Bitcoin In Vietnam The Quick Four
- Step 1: Sign up to eToro: Use our recommended broker as the best place to begin
- Step 2: Verify your ID: Upload your government-issued identity documents onto the platform to verify your identity.
- Step 3: Deposit fiat funds: Make your first deposit, ensuring the amount you add is no more than what you are willing to lose.
- Step 4: Buy Bitcoin in Vietnam: Search for Bitcoin on your chosen platform and buy Bitcoin.
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Requirements To Buy Cryptocurrency In Vietnam
Before purchasing, there are a couple of important things you’ll need to prepare:
- A passport, national identity card, or drivers to complete the KYC process.
- A private and secure internet connection, public WiFi is not recommended as it may pose security problems.
- A mobile phone to verify your identity using two-factor authentication .
- A bank account or credit card you can use to make fiat currency deposits to purchase cryptocurrencies.
- A crypto wallet to store your assets. Almost all exchanges will offer built-in wallets, but it is important to withdraw your crypto to your own personal cold wallet for optimal security.
Buy Bitcoin In Vietnam
Bitcoin in Vietnam is a hot topic these days. Despite opposition from the banks and government, theres still a thriving cryptocurrency market with lots of promise.
Bitcoin is growing in value all the time, which makes it an ideal opportunity for investors to make money. At the time of writing, a single Bitcoin is worth 338 million Vietnamese Dong .
In 2017, 7,000 new Bitcoin mining rigs were set up in Vietnam, and 5,000 of these came in after November. This suggests a huge amount of activity in Vietnams Bitcoin economy.
Because of the strong stance the banks have taken against cryptocurrency in Vietnam, its important to get to know the rules first, but buying and selling Bitcoin in the country can be highly rewarding.
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A New Dawn For Cryptocurrency In Vietnam
Over the past decade, cryptocurrency has been a consistently hot topic in Vietnam. A recent surge in the price of Bitcoin from approximately USD 4,000 to nearly USD 65,000 in just over a year has turned up the heat more than ever. According to a recent report by Statista, Vietnam is ranked second among 74 countries surveyed in terms of the percentage of respondents who said that they used or owned cryptocurrency in 2020.
The considerable interest of Vietnamese users has in turn grabbed great attention from the government, specifically regarding how it can effectively regulate and potentially utilize this type of currency. Recently, the government issued Decision No. 942/QD-TTg dated June 15, 2021, approving the strategy for development of e-government toward digital government for 2021-2025 with orientation toward 2030 . Decision 942 raised a stir among Vietnamese investors as it seemed to hint at the governments growing openness toward cryptocurrency, which to date has been largely opposed.
Legality of Cryptocurrency in Vietnam
For a general picture of cryptocurrencys legal status in Vietnam, it can be briefly summarized that there is no legal definition of cryptocurrency and cryptocurrency is not yet explicitly recognized as either an asset/property or a means of transaction.
Does Decision 942 Open a Door for Recognition of Cryptocurrency?
Best Crypto Exchange In Vietnam 2022
Finding the best cryptocurrency exchange in Vietnam can be challenging, especially for beginners. While some platforms are known for offering low fees and commissions, others focus on providing access to hundreds of cryptocurrencies and a variety of trading tools.
To help you find the best VN facing exchange for your trading goals, this guide lists and reviews the seven best crypto exchanges in Vietnam for 2022.
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What Are The Benefits And Risks Of Investing In Vietnam
Vietnam’s economy involves benefits and risks that you should carefully consider before investing. The country’s rapid growth rates may entice you. But be sure to think about the higher risk profile, government controls, and reliance on key industries to support that growth over the long term. These factors may make the country too risky for some.
The benefits of investing include:
- Rapidly growing economy: Vietnam’s economy has been growing quickly. Its growth rate had been between 2.9% and 8% since its recovery from the Asian Financial Crisis of 1997.
- Self-powered economy: Vietnam relies on the petroleum industry for its energy consumption and for export. Crude oil production is expected to decline.
Risks of investing include:
- Socialist-orientated economy: Vietnam may have transitioned from a centrally planned economy. But the government still controls many key industries.
- Early-stage market economy: Vietnam remains at an early and vulnerable stage of its economic development. That means it is riskier than developed markets.