Crypto Adoption Around The World: Vietnam

Current State of Crypto Adoption in Vietnam

Vietnam has seen an incredible rise in the number of people using and trading crypto. As of 2024, the crypto community in the country boasts over 20 million registered users, a massive leap from just 260,000 users in 2017. This tenfold growth highlights a significant shift in how people view and engage with cryptocurrencies.

One reason for this rapid adoption is the role of remittances, which contribute substantially to Vietnam’s economy. Cryptocurrencies initially gained traction as a tool for easier and faster cross-border transactions. 

The trend shows no signs of slowing down, with the number of crypto users in Vietnam projected to hit nearly 16 million by 2025. By 2024, the user penetration rate is expected to reach 15.98%, slightly dipping to 15.95% the following year. 

According to data Triple-A, Vietnam holds the second-highest cryptocurrency ownership globally, with 21.2% of its population using crypto.

Vietnam also ranks fifth on the 2024 Global Crypto Adoption Index, showing strong enthusiasm for digital currencies despite regulatory uncertainties. This high ranking is even more impressive considering the country’s relatively modest economic size compared to other top adopters. 

The country is also becoming a hotspot for several blockchain and crypto events such as GM Vietnam. These gatherings are helping to spread awareness and connect crypto enthusiasts, gamers, and industry experts.

Recognizing this momentum, Vietnam’s Prime Minister rolled out a National Strategy on Blockchain Development in late 2024. The plan aims to position Vietnam as a leader in blockchain technology by integrating these solutions across various sectors.

The Vietnam Blockchain Association (VBA) is actively supporting this vision by encouraging international partnerships and introducing regulatory sandboxes to test innovative technologies. One major focus of the strategy is the digitization of real-world assets (RWA) to enable secure, transparent international transactions. 

Adding to this progress, the Vietnam Academy of Blockchain and AI Innovation (ABAII) was launched in April 2024 at an annual blockchain and artificial intelligence forum. This academy aims to train and familiarize one million people with blockchain and AI technologies, pushing Vietnam further ahead as a leader in the crypto space.

Regulation of Crypto in Vietnam

In Vietnam, the legal stance on cryptocurrencies remains complex and restrictive. According to Article 105 of the Civil Code 2015, property is defined as objects, money, valuable papers, and property rights.

Cryptocurrencies, however, do not fall into any of these categories, making them unrecognized as legal property under Vietnamese law. As a result, they cannot be used for buying, selling, or exchanging.

The State Bank of Vietnam (SBV) further clarified this stance on July 21, 2017, stating that cryptocurrencies are not legal tender and are not recognized as valid payment methods. Issuing, supplying, or using digital currencies such as Bitcoin and Litecoin as a means of payment is prohibited under Vietnamese law. 

Non-cash payment instruments allowed include checks, payment orders, bank cards, and other tools explicitly approved by the SBV. Cryptocurrencies, not being part of this list, are therefore illegal for payment purposes.

Despite these restrictions, cryptocurrency investment activities are not outright banned. In recent years, Vietnam has begun exploring the potential of blockchain and cryptocurrencies. 

Thus, in May 2020, Prime Minister Phạm Minh Chính instructed the SBV to initiate a pilot project for blockchain applications in cryptocurrency. By July 2021, he urged further research into digital assets, focusing on taxation and consumer protection, though no specific guidelines have yet been released.

In March 2022, the Vietnam Blockchain Association was established under the Ministry of Home Affairs. It is the first legal entity centered on cryptocurrency, aiming to create a development framework for the industry. 

Similarly, the People’s Court in Ho Chi Minh City ruled in a 2023 criminal case involving Bitcoin theft, acknowledging Bitcoin’s economic value, despite its lack of status as legal property. This ruling reflects an ongoing debate about whether cryptocurrencies should be classified as property in Vietnam.

In a promising statement in April 2024, Deputy Head of the Civil Law Department Cao Dang Vinh acknowledged that cryptocurrencies and virtual assets are not banned but require specific regulation to prevent misuse. Similarly, in February 2024,  the Ministry of Finance was tasked with developing a comprehensive legal framework for crypto by May 2025. 

This initiative aligns with Decision 194/QĐ-TTg, which outlines Vietnam’s national strategy to combat money laundering, terrorism financing, and the funding of weapons proliferation. The framework will also include measures to mitigate cryptocurrency risks and enhance oversight.

Current Usage of Crypto in Various Sectors Vietnam

Crypto usage in Vietnam is expanding in various sectors despite regulatory constraints. These include:

Financial Services 

Vietnam has a substantial unbanked population, with nearly 60% lacking access to traditional banking. This gap is increasingly filled by decentralized finance (DeFi) platforms such as Coin98.

These platforms provide services such as lending, borrowing, and earning interest without the need for traditional paperwork. DeFi's accessibility makes it especially attractive to rural communities, where banking infrastructure is limited​

GameFi and NFTs

One of the most exciting areas for crypto adoption in Vietnam is GameFi—short for "game finance." In these games, players earn cryptocurrency and non-fungible tokens (NFTs) as rewards. A notable example is Axie Infinity, a globally popular play-to-earn game developed in Vietnam. 

Through gaming, many Vietnamese are introduced to the world of cryptocurrency. This sector has led to the rise of several local startups focusing on blockchain gaming such as My DeFi Pet, 9D and Theta Arena, making Vietnam a leader in this space​.

Remittances

Vietnam is one of the top countries for receiving money from abroad. In 2021 alone, Vietnamese people living overseas sent home over $18 billion. But here’s the problem; traditional money transfers come with high fees and slow processing times. 

Cryptocurrencies offer a cheaper and quicker solution. Blockchain-based transactions don’t rely on banks or middlemen, meaning lower costs and faster transfers. This makes it easier for families to support their loved ones back home​.

Investment and Trading

Vietnam has a community of retail investors, many of whom actively trade cryptocurrencies like Bitcoin, Ethereum, and a host of altcoins. According to Chainalysis, $120 billion worth of cryptocurrencies flowed into the country in just one year leading up to June 2023. 

Even more impressive, Vietnamese investors raked in $1.18 billion in profits during that period. This puts Vietnam in the top five Asian markets with the highest returns from crypto investments.

Platforms such as Binance, and local exchanges like BitcoinVN provide easy access for Vietnamese traders. These platforms offer spot trading, futures trading, and other financial instruments tailored to different risk appetites. 

One of the most popular strategies among Vietnamese crypto investors is participating in airdrops and investing in early-stage blockchain projects. Additionally, Vietnamese venture capital firms, such as Kyros Ventures, are actively investing in blockchain startups and early-stage crypto projects. 

Factors Driving Crypto Adoption in Vietnam

Vietnam has emerged as one of the leading countries in cryptocurrency adoption, with several factors fueling its rapid growth. These reasons showcase the country’s readiness to embrace digital currencies and blockchain technology. 

Let’s take a closer look at what’s driving this momentum:

Peer-to-Peer (P2P) Exchanges

One of the biggest drivers of crypto adoption in Vietnam is the widespread use of P2P exchanges such as Remitano. These platforms allow people to trade cryptocurrencies directly with each other without needing a bank or a third party to mediate. 

P2P exchanges have become especially popular because they are accessible, cost-effective, and user-friendly. For many in Vietnam, they offer a practical solution to the challenges of limited banking services, making cryptocurrency a convenient alternative.

The Use of Decentralized Finance (DeFi) 

Vietnamese users are increasingly turning to decentralized finance (DeFi) platforms for financial services like lending, borrowing, and earning interest. DeFi operates without centralized banks, offering users more control over their money. 

This innovation appeals to tech-savvy individuals who are eager to explore financial systems that are transparent and accessible. The growing adoption of DeFi applications shows how willing Vietnam is to embrace emerging technologies.

Young Population 

Vietnam’s youthful population plays a significant role in driving the country's rapid adoption of cryptocurrencies. Over half of Vietnam’s population is under 35, forming a tech-savvy and adaptable demographic that is eager to explore new digital technologies like crypto. 

This younger generation is not only technologically inclined but also highly entrepreneurial. This makes them more likely to engage with emerging trends such as blockchain, GameFi, and Web3

The Role of Remittances

Remittances are a significant part of Vietnam’s economy, contributing substantially to the country’s GDP. Cryptocurrencies have proven to be an efficient solution for cross-border transactions, offering lower fees and faster processing times. 

This is especially valuable for Vietnamese expatriates sending money back home. The ease and cost-effectiveness of using crypto for remittances have made it an attractive option for many.

National Strategies

Vietnam’s government has taken a proactive approach to blockchain technology. In 2024, the Prime Minister launched a National Strategy for Blockchain Development to integrate blockchain across various sectors and position Vietnam as a regional leader.

This strategy also includes regulatory sandboxes, which allow new technologies to be tested safely before they are fully implemented. This forward-thinking approach has created a supportive environment for crypto and blockchain innovation.

Digitization of Real-World Assets (RWA)

Another exciting development is Vietnam’s focus on digitizing real-world assets like property through blockchain. This initiative aims to make international transactions more secure and transparent.

An example of an app for real estate tokenization in Vietnam is Moonka, which pioneered the integration of blockchain technology in real estate transactions. By tokenizing properties, Moonka aimed to make property investments more accessible by allowing fractional ownership. 

However, the company faced a setback when it suspended its fundraising activities for real estate projects. 

Educational Initiatives in Blockchain and AI

Education also plays an important role in Vietnam’s crypto journey. In 2024, the Vietnam Academy of Blockchain and AI Innovation (ABAII) was established with the ambitious goal of training one million people in blockchain and AI technologies. 

This initiative ensures that more people understand and can actively participate in the blockchain revolution, paving the way for widespread adoption.

Challenges to Crypto Adoption in Vietnam

While Vietnam has made impressive strides in embracing cryptocurrencies, the journey has hurdles. Several challenges continue to impact the growth and mainstream adoption of crypto in the country. 

Let’s look at some of these challenges:

Regulatory Concerns

One of the biggest roadblocks to crypto adoption in Vietnam is the lack of clear and comprehensive regulations. While the government has shown interest in blockchain technology, the legal framework for cryptocurrencies remains vague. 

This uncertainty can deter investors, especially large-scale businesses, from fully committing to the market. Without clear guidelines, there’s also the risk of misuse or scams, which undermines trust in the ecosystem.

Intensified Regional Competition

Vietnam faces tough competition from neighboring Southeast Asian countries like Thailand and Indonesia, which are also vying to become leaders in blockchain and cryptocurrency innovation. These countries often have more developed regulatory frameworks and robust financial systems. 

They also have established infrastructure, making them more attractive to international investors and blockchain companies. To stand out, Vietnam will need to address these gaps and find ways to offer unique advantages.

Limited Large-Scale Institutional Engagement

While retail adoption of cryptocurrencies is strong, Vietnam’s market lacks significant involvement from institutional investors. Large-scale financial institutions often bring stability, liquidity, and credibility to a market, but their participation in Vietnam has been limited. 

This is partly due to regulatory uncertainties and partly because many institutions are still exploring blockchain’s potential rather than actively investing in cryptocurrencies.

Concerns About Security and Fraud

The crypto market worldwide is often associated with risks like hacking, scams, and fraudulent schemes, and Vietnam is no exception. The country has seen its share of crypto-related scams. 

Consequently, this can erode trust and discourage new users from entering the market. Without robust security measures and public awareness campaigns, these issues could hinder trust in the system and slow adoption.

Conclusion

As the crypto space continues to grow, Vietnam is quickly becoming a key player in the global cryptocurrency scene. From decentralized finance (DeFi) platforms to remittance services, crypto is providing new opportunities to the people in Vietnam.

Despite some challenges, such as regulatory uncertainty, the adoption of crypto in Vietnam has shown no signs of slowing down. The continued interest in digital assets, particularly as a hedge against inflation, is a clear indicator of their growing role in everyday life.

As the country navigates its relationship with digital currencies, it’s clear that crypto is here to stay.