Military Bank to Launch Regulated Crypto Exchange in Vietnam
Vietnamese state-controlled bank Military Bank (MB) is set to introduce a regulated cryptocurrency exchange in collaboration with Dunamu, the parent company behind South Korean crypto exchange Upbit.
On Wednesday, Dunamu made a formal announcement stating that they have entered into a memorandum of understanding with Military Bank. Military Bank shared on Facebook that Dunamu will assist in the development of a cryptocurrency exchange in Vietnam using its technology.
“MB and Upbit will be trusted partners, working together to promote Vietnam’s digital financial market,” said Military Bank Chairman Luu Trung Thai.
As a financial institution operating under the Vietnamese Ministry of National Defense, the establishment of this crypto exchange marks a government-supported initiative.
In March, Deputy Minister of Finance Nguyen Duc Chi revealed plans for a pilot program for financial technology companies in Vietnam, which includes crypto exchanges. According to the official online publication of the local government, Deputy Governor of the State Bank of Vietnam (SBV) Pham Tien Dung announced that Vietnam has officially created a legal framework for digital assets, which encompasses tokenized assets.
The leadership of SBV, the nation’s central bank, emphasized that the pilot program put forth in March by the Deputy Finance Minister was crucial for further development. Two additional elements required for progress were a resolution from the National Assembly and a law governing industry and digital technology.
“We’re acting through law to facilitate investment and business in this sector,” remarked SBV’s Dung.
Vietnam’s crypto exchanges will be tested within an international financial hub. However, the pilot initiative is still under review, and multiple exchanges will be permitted according to the Ministry of Finance.
Current Landscape of Crypto Exchanges in Vietnam
Contrary to some reports claiming that this will be Vietnam’s first domestic crypto exchange, that is inaccurate. The nation currently accommodates BitcoinVN, an instant exchange without sign-up that supports Bitcoin (BTC), Ether (ETH), USDt (USDT), and Ginero, which is managed by Bitcoin Vietnam.
Nami. Exchange also provides both spot and futures trading options as part of Nami Technology JSC, a company registered in Vietnam.
Nevertheless, with Vietnam’s pilot regulatory structure likely leading to future licensing requirements, Military Bank’s crypto exchange could emerge as the first regulated exchange under the impending framework.
