According to the Chairman of the Vietnam Blockchain Association (VBA), this move is a short-sighted and reactionary response.

Resolution No. 05/2025/NQ-CP, effective September 9, 2025, sets out a pilot framework for Vietnam’s digital asset market.

One key provision is that tokenized assets can only be offered to foreign investors during the trial phase.

Phan Duc Trung, Chairman of VBA, noted that it is too early to determine the attractiveness of tokenized real-world assets (RWA) for domestic investors.

If the market proves compelling, policies will naturally evolve to expand local access.

He stressed that this adjustment process is common in countries that pioneered digital asset regulation.

Resolution 05 is a pilot mechanism with a maximum term of five years.

During this period, the State can observe, evaluate, and make policy changes if necessary.

International experience shows that hasty rollouts can trigger catastrophic losses.

Bloomberg reported that the collapse of Terra–LUNA in 2022 wiped out around $60 billion globally.

Japan also suffered major shocks, such as the Mt. Gox hack in 2014 ($480 million) and the Coincheck breach in 2018 (over $500 million).

These examples highlight that crypto risks can be massive.

Limiting access to foreign investors in the initial phase may be a prudent safeguard.

Still, restricting Vietnamese investors could be seen as a missed opportunity if RWAs become a lucrative asset class.

Trung emphasized that this is only a pilot phase.

He urged local firms and the blockchain community to contribute policy feedback professionally, based on practical experience.

Constructive engagement could pave the way for opening the market to domestic investors on a stronger legal foundation.

Following Resolution 05, several blockchain companies announced service restrictions in Vietnam.

KyberSwap, Coin98 Wallet (by Ninety Eight), and Ronin Wallet (under Sky Mavis) all redirected focus to international markets.

They argued that suspending domestic access was necessary to comply with the new framework.

Trung pointed out that these are mostly DeFi projects, a sector rife with risks and subject to FATF compliance scrutiny.

Chainalysis estimated that $3.8 billion worth of crypto was stolen in 2022, with DeFi accounting for 82% ($3.1 billion).

Temporarily blocking users reflects an awareness of regulatory and security risks.

However, Trung criticized these firms for reacting emotionally instead of engaging regulators in dialogue.

He revealed that despite VBA’s two-year effort to solicit feedback for legal frameworks, none of these firms submitted official input.

This contrasts sharply with the U.S. and EU, where companies actively participate in consultations.

By sharing governance and operational experience, they help authorities craft internationally aligned regulations.

Trung hopes Vietnamese blockchain firms will adopt a similar approach.

Instead of waiting passively and overreacting, they should work alongside the State to shape sustainable policy.

Le My