By – Dinh Hong Ky & Dinh Hong Ky
Singapore, July 21, 2025 – In 2024 a Vietnamese blockchain startup had to move its headquarters to Singapore just to be considered “legal.”
Founded by Vietnamese engineers who graduated from the Massachusetts Institute of Technology in the U.S. and fully complied with international standards, the company could not even register a business in Vietnam due to the absence of a legal framework for cryptocurrencies.
This is not an isolated case but part of a broader trend of crypto startups relocating overseas to gain legal recognition as a result of an outdated mindset that says: if it cannot be controlled, ban it.
Vietnam ranks among the world’s top countries in cryptocurrency adoption.
According to Chainalysis, between 2021 and 2023 Vietnam consistently placed in the global top five, surpassing even developed markets.
Millions of Vietnamese own digital assets like Bitcoin and Ethereum, but there is still no clear legal framework yet.
The government neither bans nor acknowledges crypto, leaving investors and startups in a legal gray zone.
Without regulatory clarity, authorities are left to apply outdated laws to manage emerging risks.
The State Bank of Vietnam has repeatedly warned against using crypto for payments, but transactions continue in the shadows, without consumer protection, tax oversight or accountability.
As of mid-2025 there are still no regulations classifying cryptocurrencies as assets, legal tender or securities. The consequences are significant: investors who lose money cannot seek legal recourse, startups cannot open bank accounts and the government collects no tax on billions of dollars worth of trading.
Meanwhile, countries with similar governance profiles have moved forward.
Singapore is a prime example.
Confronted with the same dilemma – of how to balance innovation with risk management – it took early action.
In 2019 Singapore passed the Payment Services Act, licensing crypto exchanges to operate under a regulatory sandbox.
These businesses must meet anti-money laundering standards, ensure consumer protection and securely store digital assets.
This forward-thinking approach has made Singapore a digital asset hub in Asia: Major players like Binance, Coinbase and Ripple have opened offices there; local companies benefit from better access to capital and global partnerships; and, most importantly, both investors and consumers enjoy legal protection.
The UAE followed suit.
In 2022 Dubai launched the Virtual Assets Regulatory Authority to oversee crypto-related businesses.
Dinh Hong Ky is a businessman.
