VPBank is completing the procedures to participate in the pilot implementation of the cryptocurrency exchange.

According to information from Vietnam Prosperity Joint Stock Commercial Bank (VPBank), VPBank Securities Joint Stock Company (VPBankS) – a subsidiary of VPBank – will play a key role in the development project of the encryption asset exchange. To implement this project, VPBank plans to mobilize a team of experts in the fields of blockchain, finance, and cybersecurity, along with consulting from leading entities.

At the annual meeting held in April, Mr. Nguyễn Đức Vinh, CEO of VPBank, emphasized that the cryptocurrency market is a new and important field, but it also carries many risks. He believes that a clear legal framework and the participation of organizations with strong foundations are necessary to ensure sustainable development. Mr. Vinh also stated that VPBank has conducted analysis and engaged with partners in preparation for entering this market.

Before VPBank, several other financial institutions also made moves to approach the field of encryption assets. In August, MB Bank partnered with Dunamu Group – the operator of Upbit exchange – to implement a cryptocurrency exchange in Vietnam. According to the agreement, Dunamu will provide technology, legal consulting, investor protection support, and human resource training. In addition, some securities companies such as SSI, VIX, and TCBS have also participated in contributing capital to establish companies in the field of digital assets.

The participation of banks and financial-based securities companies in the cryptocurrency asset market shows the great potential of this sector. They are sufficiently equipped with resources (capital and manpower) to handle risks related to liquidity and the anti-money laundering systems that have been implemented for many years, as noted by a representative of Techcom Securities (TCBS) at the event last June.

VPBank, established in 1993, is currently ranked sixth among the banks with the largest total assets in Vietnam, reaching 1.1 million billion VND. VPBankS, a company in which VPBank holds 99.9% of the capital, operates in the securities field and is expected to conduct an IPO by the end of this year.

Vietnam is piloting the cryptocurrency market for 5 years, according to the Government's Resolution. Accordingly, the company operating the exchange must have a minimum capital of 10 trillion VND, of which 35% of the capital must be held by at least two organizations such as banks, securities companies, fund management, insurance or enterprises in the technology sector. The remaining 65% can belong to non-individual organizations, and foreign investors are allowed to own a maximum of 49% of the capital.

Deputy Minister of Finance Nguyen Duc Chi has stated that Vietnam "will definitely have more than one exchange" to ensure competitiveness. However, the regulatory agency will not grant many licenses due to concerns about the evaluation capability after the trial period.

The Vietnam Blockchain Association (VBA) cites a report from the analysis company Chainalysis, stating that the flow of capital from the blockchain market into Vietnam is expected to exceed 105 billion USD in the period of 2023-2024, with profits generated nearing 1.2 billion USD in 2023. According to a 2024 report by Triple-A, more than 20% of the Vietnamese population owns digital currency. Vietnam is also among the top three countries in terms of cryptocurrency adoption index, with a prevalence rate 3-4 times higher than the global average, according to data from Chainalysis.

Mr. Teacher