Crypto firms looking to operate in Vietnam’s pilot digital asset market will need a minimum paid-up capital of VND 10 trillion (approximately US$400 million).
The requirement is set out in a decision issued by the Ministry of Finance, which outlines how licences for crypto asset trading market operators will be granted, amended or revoked.
The move follows the government’s resolution on piloting the crypto asset market and places regulatory oversight with the State Securities Commission.
Only Vietnamese-incorporated companies structured as limited liability companies or joint stock companies can apply.
At least 65 percent of charter capital must come from institutional founding shareholders, with more than 35 percent contributed by at least two regulated entities such as commercial banks, securities firms, fund managers, insurance companies or technology enterprises.
Total foreign ownership is capped at 49 percent, and all capital contributions must be made in Vietnamese dong.
Institutional shareholders must have been profitable for the two years leading up to the application, with financial statements receiving clean audit opinions.
Organisations and individuals are only allowed to invest in one licensed crypto service provider, limiting cross-ownership across the market.
What requirements crypto firms need to meet
In practice, the standards applied to crypto operators are closer to those imposed on securities exchanges and systemically important financial institutions, pointing to a cautious approach to market entry.
Applicants must also meet staffing and technology requirements.
The CEO needs at least two years of experience in finance, securities or banking, while the CTO must have at least five years’ experience in information technology within the financial or technology sectors.
Firms are required to employ at least ten IT staff with network information security certifications and at least ten staff with securities practice licences.
On the systems side, platforms must meet Level 4 national information system security standards before they can begin operating.
The licensing process is phased. The Ministry of Finance will first issue a notice within 20 days of receiving an initial submission, after which firms have up to 12 months to complete their technical and capital verification.
The Ministry then has up to 30 days to make a final decision. No application fees are charged under the new framework.
Featured image: Edited by Fintech News Singapore, based on images by suriyawutsuriya and barancet02 via Freepik
