State Bank of Vietnam and Crypto Regulation in Southeast Asia

When you hear State Bank of Vietnam, the central monetary authority responsible for Vietnam’s currency, monetary policy, and financial stability. Also known as SBV, it has been one of the most aggressive central banks in Asia when it comes to shutting down cryptocurrency activity. Unlike countries that try to balance innovation and control, the State Bank of Vietnam doesn’t just discourage crypto—it makes it illegal for citizens to use Bitcoin, Ethereum, or any other digital currency as payment. That means no buying coffee with Solana, no sending remittances via Binance, and no holding crypto as an investment through local banks. The law isn’t vague: using crypto for transactions can lead to fines, and exchanges operating in Vietnam get shut down fast.

This crackdown isn’t random. The State Bank of Vietnam sees crypto as a threat to its control over the digital yuan, the official state-backed digital currency being rolled out across China and influencing neighboring economies. Vietnam’s own central bank digital currency, a government-controlled digital version of the Vietnamese đồng, is already in testing. The goal? Replace cash and crypto with something the state can track, tax, and control. Meanwhile, millions of Vietnamese still use crypto to send money home from abroad, buy goods overseas, or protect savings from inflation—making the ban a real hardship for families, not just a policy win for regulators.

What’s interesting is how this plays out in the real world. While the State Bank of Vietnam bans crypto use, you’ll still find traders using peer-to-peer platforms, offshore exchanges, and VPNs to bypass restrictions. But the risk is high: arrests, wallet seizures, and bank account freezes happen regularly. The same people who rely on crypto to survive are now living under constant fear of being caught. This tension—between government control and personal financial freedom—is what makes Vietnam’s crypto story one of the most intense in Southeast Asia. Below, you’ll find real reports on how this crackdown affects traders, what scams have popped up because of it, and how people are adapting when the official system won’t let them move money freely.