Someone asked us how can I start a Cryptocurrency Exchange or Bitcoin Exchange in Vietnam? Whether Cryptocurrencies like Bitcoin are legal in Vietnam?
Honestly, we did not have a clear answer to that. So the first thing we tried to figure out was “is Bitcoin legal in Vietnam”. When searched on Google, we found Wikipedia Page:
Vietnam, too like most other developing countries has a young and vibrant population that is hooked to emerging technologies that bring business, investing and trading opportunities. Off late, Cryptocurrencies have caught the attention of traders especially Forex Traders. It was easier for them to understand the dynamics of cryptocurrency pairs trading and they made the most of it.
When researched online, it seems that Vietnam Government doesn’t have a stated regulations around Cryptocurrencies & Exchange Business but State Bank of Vietnam has notified on the legal status of Cryptocurrencies like Bitcoin:
Is Bitcoin legal in Vietnam?
An in-depth research indicates that Vietnam Government doesn’t have any clear regulations on Bitcoin or Crypto Exchanges Business. But State Bank of Vietnam does have given advisory and regulations around Bitcoin Legality. Cryptocurrencies like Bitcoin, Ether, and Ripple etc. are classified and regulated in Vietnam as follows:
- Issuance, Supply and use of Cryptocurrencies is illegal as means of payment
- Bitcoin and other popular Cryptocurrencies can’t be used as legal tender to make payments for services and goods.
- Classified as Assets or Virtual Goods which can be traded like any other asset class
- Violations can attract punishment between VND 150 – 200 Million
How to Start a Cryptocurrency Exchange in Vietnam?
What our interpretation of different news and updates in Vietnamese Media suggests that any Vietnamese Citizen can Start a Cryptocurrency Exchange in Vietnam same as any other business. It’s just that they need to comply with State Bank of Vietnam’s guidelines of Cryptocurrency issuance, uses and trading.
Based on this assumption, we suggest following step-by-step process to follow if you want to start a Cryptocurrency Exchange in Vietnam?
- Set Up a Company/Business: Local Company or LLP Businesses are most popular in Vietnam but you need to check with a corporate legal consultant about which form of business would suit your requirement best. They might suggest to Set Up a Company as Technology Provider would in Vietnam.
Its best to follow what the legal expert or consultant suggests.
- Open Bank Account: Check with your bank beforehand and inform them what kind of business you are getting into. Although banks ask your business details, you must provide full disclosure and information to them about your intended business activities so as to avoid any issues later.
- Crypto Exchange Software / White Label Solution: Depending on capital availability you can either hire crypto exchange developing companies to develop a proprietary platform which may cost USD 500,000 and 6 months or more.
If the cost and timeline looks too much, you can subscribe to Crypto White Label Solution which may cost less than USD 10,000 to start. Best Cryptocurrency exchange white label provider will provide you a complete turnkey solution with Front End, Back End, Trading Terminal, CRM, e-wallets, Cryptocurrency Pairing, Token Listings, Reporting, Servers, Database and Hosting etc.
We have discussed what is Bitcoin or Cryptocurrency Exchange Software in this blog.
- Marketing & Promotion: Starting a Crypto Exchange business is easy if you have funds and a turnkey crypto exchange solution provider. The key to a thriving Bitcoin exchange lies in its ability to bring traders and investors to exchange and make them trade regularly. Once business is set up and technology is in place, you need to put all efforts into Marketing & promotion of your crypto exchange.
Since Cryptocurrencies like Bitcoin, Ether and Ripple etc. are new security and asset classes, you need to keep engaging with your trader community to educate and build trust on the system. The Social Media Platforms like Twitter, Facebook, YouTube etc. needs to be at the core of all your Crypto Marketing Campaigns.
It will ultimately help you to grow your crypto exchange.
- Operate the Crypto Exchange efficiently: This is very critical especially in technology based business. You need to ensure:
- Your crypto exchange is always up and running
- You have advanced security measures in place to protect crypto exchange and user wallets from hacking, phishing and other security breaches
- Shut downs are scheduled and notified to users in advance
- Customer Support Team is always on their toes in hand holding new customers, addressing issues faced by them.
- Keep your community engaged and you would see rapid rise in your exchange business.
- Strict Regulatory Compliance by timely Filings: Whatever you do, never ever mess with regulators and authority. They should always feel like yours is a law abiding business. You can wind their trust by simply following Regulatory Filings like any other business along with what your legal consultant has suggested.
Be proactive and keep your crypto exchanges business operations neat and clean.
- Get the Business Audited by Competent Authority or Auditors: This is very critical especially with cryptocurrency exchange business. Because even if Vietnamese Government says you can operate a crypto exchange business within defined limitation, they would be cautious like any other countries’ government. Regulatory agencies would be keeping an eye on your business.
Even if they don’t, it’s critical to maintain your business hygiene by getting your crypto exchange business audited in regular intervals. The observations and warnings shared by Auditors should be taken seriously and should be worked upon.
It’s highly advisable that you hire consultants and auditors working with Stock Exchanges. Try to follow the checks and balances stock exchanges have in place. It will keep you clean and help you wind the trust of regulators and authority.
- Review & Scale Up Crypto Exchange: The Cryptocurrencies domain is going through rapid changes, improvements and evolution. Regulators, Government Agencies etc. have a close watch on what’s happening in crypto sphere. Hackers on the other hands keep breaching the exchanges and stealing the valuable crypto currencies.
Make sure to stay compliant with regulations and filings schedule. Although, your White Label Crypto Exchange Software Provider must have ensured Cyber Security issues, its advisable to take help of external online security experts to ensure your crypto currency exchange is secure from DDos, Phishing and other hacking attacks.
To not only survive but to keep scaling up your crypto exchange business, you must review and explore the opportunities and challenges regularly. Constant improvisation in technology and business operations will ensure you keep growing and remain profitable.
If you are looking to start a Cryptocurrency or Bitcoin Exchange in Vietnam or any other part of the world, please feel free to contact us for assistance. We will be happy to help you.
Disclaimer: We are not a legal advisory firm. This blog has been written be referring Wikipedia and other online sources. You must consult a competent legal expert or firm before starting a crypto exchange in Vietnam or any other country.