KUALA LUMPUR, Dec 16 (Bernama) -- Bursa Malaysia extended its positive performance, closing higher for a fourth consecutive session, supported by improving local market sentiment underpinned by a firm domestic macroeconomic backdrop. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.59 points, or 0.28 per cent, to 1,648.31, from Monday’s close of 1,643.72. The index had opened 0.95 of a point lower at 1,642.77, and moved between 1,636.50 and 1,648.71 throughout the trading session However, on the broader market, decliners beat gainers 699 versus 408. A further 520 counters were unchanged, 1,149 untraded and 12 suspended. Turnover rose to 2.59 billion units worth RM2.27 billion from 2.50 billion units worth RM2.16 billion on Monday.
Key Takeaways:
Vietnam approved a five-year pilot programme for crypto trading, signaling a regulatory shift in a country ranked fifth globally for adoption.
Local-only participation: Only Vietnamese firms can operate exchanges and issue tokens; all transactions must be denominated in dong.
Capital requirements: Minimum capital of 10 trillion dong (US$379M) with at least 65% from institutional investors. Foreign ownership capped at 49%.
New law recognizing digital assets will take effect in January 2026, positioning blockchain as a national priority sector.
A Significant Policy Shift
Vietnam’s government has formally approved a trial programme to regulate crypto trading, a market that has grown rapidly in a legal grey zone. The initiative reflects recognition of crypto’s role in the domestic economy: 17 million Vietnamese already hold digital assets worth more than US$100 billion.
The new framework requires exchanges to be locally operated and denominated in dong, reinforcing domestic oversight. Issuances are limited to foreign investors, a move designed to attract external capital while retaining local regulatory control.
Market Access and Investor Rules
Key requirements include:
Capital threshold: 10 trillion dong (US$379M), with 65% from institutional investors.
Foreign ownership cap: Limited to 49%.
Enforcement window: Six months after the first license issuance, trading on unlicensed platforms by Vietnamese investors will be illegal.
Although penalties remain unclear, the framework sets a decisive timetable for market transition into regulated venues.
Strategic Context: From Caution to Embrace
After years of official warnings about crypto risks, Vietnam is pivoting toward recognition and controlled adoption. Parliament approved legislation in June 2025 to legally recognize digital assets starting January 2026. Blockchain and digital assets are now classified among 11 strategic technology areas, central to Vietnam’s ambition of sustaining double-digit economic growth.
International Partnerships
Vietnam is also drawing in regional expertise. In August, Dunamu (Upbit operator, South Korea) signed an MoU with Vietnam’s Military Bank to support the establishment of a domestic crypto exchange, including technology transfer. This underlines a broader push to integrate Vietnam into regional and global digital finance ecosystems.
Outlook for Investors
Vietnam’s pilot programme creates a clearer regulatory path for crypto trading, potentially unlocking institutional participation while limiting speculative retail activity on offshore platforms.
Opportunities: Regulated exchanges could deepen liquidity, enhance transparency, and support the country’s ambitions as a regional financial hub.
Risks: Strict capital thresholds and foreign ownership caps may limit foreign direct participation, while uncertainty over enforcement and taxation remains.
Medium term: The 2026 recognition of digital assets provides a definitive timeline for integration into Vietnam’s financial system.
Bottom Line: Vietnam is moving from an unregulated adoption model to a structured regulatory sandbox, balancing innovation with oversight. For investors, the trial signals growing institutionalisation of crypto in Southeast Asia, though local constraints and political oversight will remain key determinants of market access.
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