Vietnam’s once-thriving cryptocurrency scene is facing a harsh correction after years of explosive growth, leaving investors and startups grappling with heavy losses and an uncertain regulatory future.
Hoang Le, now 23, began trading crypto as a first-year computer science student in Hanoi, encouraged by friends who were seeing rapid gains. At the peak of the boom, his digital portfolio ballooned to nearly $200,000 — roughly 50 times Vietnam’s average annual income.
But when bitcoin and other cryptocurrencies plunged in recent months, his holdings were wiped out.
“It hurt a lot,” Le said, describing the loss as an expensive but necessary lesson. He now calls it his “tuition fees,” reflecting on a period when soaring profits fueled unchecked optimism. “It was too good to be true,” he added.
Rapid Rise, Sharp Fall
Unlike China, which banned cryptocurrency transactions, Vietnam allowed blockchain technology to grow in a regulatory grey zone — prohibiting digital currencies for payments but not restricting speculative trading.
That approach helped make the country one of the world’s most active crypto markets. With an estimated 17 million people holding digital assets, Vietnam ranked among the top adopters globally, according to a 2025 report by blockchain analytics firm Chainalysis.
However, the global downturn in crypto markets has exposed vulnerabilities. Bitcoin has dropped sharply from its record high of over $126,000 in October, while many alternative tokens have fallen even further.
The fallout has rippled across Vietnam’s crypto ecosystem. Startups involved in NFTs, blockchain lending and trading platforms have been hit by layoffs, restructuring and, in some cases, shutdowns.
Tran Xuan Tien, head of Ho Chi Minh City’s blockchain association, said many firms are scaling back operations. “Some companies have shut down, and others are conserving capital to survive this period,” he noted.
Nguyen The Vinh, co-founder of blockchain company Ninety Eight, confirmed that his firm has cut nearly a third of its workforce over the past year and warned that further restructuring may be necessary. “The market will likely remain difficult for years, not just months,” he said.
A $100 Billion Market Under Scrutiny
Until recently, Vietnam’s crypto sector resembled a digital frontier, with high-risk ventures and alleged Ponzi schemes operating alongside legitimate innovation. Authorities intervened in several major fraud cases, including one that reportedly defrauded investors of nearly $400 million.
Rather than banning the industry outright, however, Vietnam has moved toward regulation. Under Communist Party chief To Lam, the government has sought to formalize oversight of what is estimated to be a $100 billion market.
Last year, Vietnam passed legislation recognizing digital assets within a regulatory framework — the first such move in the country. The law came into force recently, though implementation details remain unclear to many investors and entrepreneurs.
Hanoi has also announced a five-year pilot program allowing domestic firms to issue digital assets. Still, regulatory ambiguity has prompted several Vietnamese-founded crypto firms to register in jurisdictions such as Singapore and Dubai instead of at home.
Investor Sentiment Turns Gloomy
For startups, raising capital has become increasingly difficult. A 24-year-old founder identified only as Huu said foreign investors who once expected returns of 400–500 percent are now far more cautious.
“Over the past few months, things have gone downhill badly,” he said, noting that market sentiment has shifted dramatically.
According to market analyses, more than half of individual Vietnamese crypto investors reported losses last year. As prices slide, enthusiasm has given way to frustration.
“In Vietnam, many people trade crypto,” Huu said. “When prices fall, people complain about losses, and the overall mood becomes very gloomy.”
While some founders argue that downturns are part of the industry’s natural cycle and that stronger firms will emerge, for many retail investors the crypto winter has been a sobering reminder of the risks behind the boom.
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