Military Bank (MB), a bank in Vietnam with state control, intends to introduce a compliant cryptocurrency trading platform. This venture is planned in cooperation with Dunamu, the parent company behind South Korean crypto exchange, Upbit.
According to an official statement released by Dunamu on Wednesday, a preliminary agreement has been reached with Military Bank. A message on Facebook from Military Bank specified that Dunamu will provide technological assistance in establishing a crypto exchange platform within Vietnam.
“MB and Upbit will forge a strong partnership, working together to enhance the development of the digital financial sector in Vietnam,” stated Luu Trung Thai, Chairman of Military Bank.
Given that Military Bank is a financial organization operating under the direction of the Vietnamese Ministry of National Defense, this cryptocurrency exchange can be considered an initiative steered by the government.
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Vietnam’s Approach to Cryptocurrency Regulation is Taking Shape
Earlier in March, Deputy Minister of Finance Nguyen Duc Chi revealed a pilot program geared towards fintech companies in Vietnam, inclusive of crypto exchanges. According to the official publication of the local government, Pham Tien Dung, Deputy Governor of the State Bank of Vietnam (SBV) stated at a recent event that Vietnam has officially laid out a legislative foundation for digital assets, covering even tokenized assets.
The leaders at SBV – Vietnam’s central banking authority – highlighted that the pilot initiative presented by the Deputy Finance Minister in March was vital to the evolution. The other essential elements included a resolution proposed by the National Assembly and legislation concerning industry and digital technologies.
“We are using legal measures to promote investment and commerce within this area,” stated Dung from SBV.
The cryptocurrency exchanges in Vietnam will initially be tested within an international financial center. Even so, the final details of the pilot program are being ironed out, and the Ministry of Finance has indicated that multiple exchanges will be allowed.
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Will This Be Vietnam’s First Officially Regulated Crypto Exchange?
Despite some reporting implying this is the first domestic cryptocurrency exchange in Vietnam, this is not entirely correct. BitcoinVN, a straightforward exchange platform requiring no registration, already operates within the country, supporting Bitcoin (BTC), Ether (ETH), USDt (USDT), and Ginero; it is managed by Bitcoin Vietnam.
Nami.Exchange, under Nami Technology JSC (registered in Vietnam), also facilitates spot and futures trading of cryptocurrencies.
Nevertheless, with Vietnam’s preliminary regulatory system likely leading to eventual licensing criteria, the crypto exchange by Military Bank could potentially emerge as the first fully regulated exchange under the fresh regulatory structure.
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