Vietnam sets fines and suspensions under pilot crypto market decree

Scope of the new decree

Under the decree, crypto asset service providers and issuers operating within the pilot framework must be licensed. The rules apply to a range of conduct, including unlicensed activity, failures in required reporting, and breaches tied to market oversight and customer protection.

The decree also covers violations such as failing to separate customer funds, not monitoring trading activity, or not storing required data in Vietnam. Entities that advertise crypto services without proper authorization, or offer them to subjects not permitted under the framework, may also face penalties.

Fines and operating restrictions

The highest monetary penalties set out in the decree reach VND200 million for organizations and VND100 million for individuals. In addition to financial penalties, the framework allows for confiscation of illicit assets and temporary suspensions affecting both licenses and business operations.

Service providers may face license suspensions, while some violations can trigger operating bans lasting from one month to 12 months. The decree therefore combines direct fines with measures that can interrupt access to the market for non-compliant firms.

Retail investors and remedial obligations

One notable provision extends enforcement beyond issuers and platforms to retail users. Individual investors can be fined for trading crypto assets outside licensed service providers, reflecting a policy approach that seeks to channel activity into regulated venues during the pilot phase.

The decree also sets out specific corrective obligations after a violation is found. Parties may be required to destroy or correct false information, return unlawful profits within 60 days, refund investors within three working days, or pay an equivalent value within 30 days where applicable. These remedies sit alongside the financial and administrative sanctions rather than replacing them.

AML and enforcement powers

A substantial portion of the decree addresses AML/CTF compliance. Penalties can apply to unlawful handling of data, inadequate customer identification procedures, weak risk assessment processes, and failure to report suspicious transactions. This places customer due diligence and transaction monitoring among the core compliance expectations for firms operating under the pilot market structure.

The article states that the decree includes a one-year statute of limitations for handling violations. Enforcement authority is assigned across multiple Vietnamese government bodies, indicating that supervision will not rest with a single agency.

The new decree gives Vietnam a more detailed penalty framework for its experimental crypto market, pairing licensing requirements with fines, suspensions, confiscation measures, and mandatory repayments. While the source article does not detail how frequently the penalties may be used in practice, it shows that authorities plan to enforce participation through licensed channels and impose corrective action on both firms and retail traders.