How exactly do you tax a market that barely exists in regulatory terms? Vietnam thinks it has the answer: slap a 0.1% personal income tax on every crypto transaction, just like stocks. Easy peasy.
The government recently announced plans to tax all cryptocurrency transfers through licensed providers, regardless of whether you make a profit or take a bath.
The tax applies to everyone—residents, non-residents, that crypto-obsessed foreign investor down the street. Everyone pays. No exceptions. It’s calculated on total turnover, not net gains. Lose money? Tough luck. You’re still paying that 0.1%.
At least there’s some good news. Crypto transfers will be exempt from value-added tax. The draft circular classifies digital assets as financial instruments, not goods or services. One less tax to worry about, right?
Small silver lining: no VAT on crypto since it’s a financial instrument, not a product. One tax dodged!
Companies aren’t getting off so easily though. Vietnam-based businesses trading crypto will face a 20% corporate income tax on profits. They can deduct purchase costs and related expenses before calculation. Small comfort.
The government has clearly defined what counts as cryptocurrency: digital assets using cryptographic technologies for issuance, storage, and transfer verification. They’re treating these assets like securities, which explains the similar tax approach.
Want to run a crypto exchange in Vietnam? Better have deep pockets. The licensing requirements are brutal—10 trillion VND ($408 million) minimum charter capital, and foreign ownership capped at 49%. No wonder nobody applied when applications opened in September 2025.
Vietnam’s five-year pilot program for regulated crypto markets launches with strict rules. All trading must be in Vietnamese Dong. The program is scheduled to begin in September 2025 to provide regulatory structure to the industry. No exceptions.
The new framework represents continuity of existing laws rather than a dramatic shift in policy, maintaining consistency with Vietnam’s cautious approach to financial regulation.
For a country ranked fourth globally in crypto adoption, this brings some clarity to a previously gray market. The tax rate is low enough that people might actually comply. But those massive capital requirements for exchanges? They’ll strangle legitimate trading options.
Investors should implement proper diversification across different cryptocurrencies to mitigate the impact of these regulatory changes on their portfolios.
Welcome to Vietnam’s attempt at crypto regulation. It’s a start. Sort of.
