A draft decree outlining penalties in the crypto asset sector is currently under review by the Ministry of Finance and the State Securities Commission (SSC).

Under the draft, organizations providing unlicensed crypto asset services or advertising without a license face fines ranging from 180-200 million VND. They must also surrender any illegal profits and remove infringing systems. Individuals offering similar services without a license face 50% of the organizational fine, approximately 90-100 million VND.

Domestic investors trading on unlicensed exchanges face fines of 10-30 million VND. Resolution 05 previously mandated that domestic investors transfer crypto assets held abroad to licensed organizations by the Ministry of Finance within six months. A representative from the State Securities Commission stated this process would fully comply with know your customer (KYC) regulations, client authentication, and the use of verified bank accounts.

The draft resolution also proposes fines of 50-70 million VND for organizations failing to verify investor identities. For serious violations, such as organizations not segregating client assets or failing to monitor trading activities, fines could range from 100-150 million VND. Notably, organizations failing to ensure the accuracy of submitted regulatory records may face penalties up to 15-200 million VND.

The Chairman of the State Securities Commission and chairmen of provincial People's Committees (UBND) have the authority to impose maximum fines of 200 million VND on organizations and 100 million VND on individuals. They also have the power to apply additional penalties and remedial measures.

Currently, Vietnam has approximately 21 million crypto asset investors, with a turnover exceeding 200 billion USD, a significant figure relative to the economy's size. Vietnam consistently ranks among the top 3-4 globally for crypto asset market participation, with about 21% of its population involved, trailing only South Korea.

Resolution 05 stipulates that ba agencies will jointly manage the crypto asset market: the Ministry of Finance will oversee service providers and trading activities; the State Bank of Vietnam will manage cash flow and payment methods; and the Ministry of Public Security will focus on preventing fraud and high-tech crime.

By Phuong Dung