Understanding Vietnam's 150‑200Million VND Fines for Crypto Payments

Imagine a coffee shop in Hanoi trying to accept Bitcoin for a latte, only to be hit with a 150‑200millionVND fine-about $6,500‑$8,900. That scenario isn’t a distant rumor; it’s a real consequence of Vietnam’s strict stance on using digital currencies as a payment method.

Key Takeaways

• The State Bank of Vietnam (SBV) bans all crypto‑based payments and levies fines of 150‑200millionVND per violation.
• Legal basis lies in Decree No.96/2014/ND‑CP, Decree 101/2012/ND‑CP (amended by Decree 80/2016/ND‑CP), and a 2018 SBV enforcement directive.
• Holding crypto is not illegal, but using it to pay for goods or services is.
• Enforcement has focused on high‑profile merchants; everyday peer‑to‑peer trades continue underground.
• Regional peers like Thailand and Singapore take a softer, licensing‑first approach, offering useful comparison points.

What the Law Actually Says

Decree No.96/2014/ND‑CP sets administrative sanctions for monetary and banking activities, including a 150‑200millionVND fine for issuing, supplying, or using Bitcoin as payment. The relevant clause reads: “The issuance, supply, and use of Bitcoin and other similar virtual currencies as a means of payment is prohibited.”

That prohibition is reinforced by Decree 101/2012/ND‑CP on non‑cash payments, amended by Decree 80/2016/ND‑CP. The amendment limits lawful payment instruments to checks, bank cards, and other SBV‑approved tools, leaving crypto out of the legal list.

The policy was sealed when Prime Minister Nguyen Xuan Phuc issued a directive in 2017 to develop a legal framework for virtual currencies. The SBV released its final framework on October 28, 2017, stating the ban would take effect on January 1, 2018.

Why Vietnam Chose a Hardline Approach

According to Le Truong Tung president of FTP University, the SBV worries that crypto payments could undermine monetary sovereignty, enable tax evasion, and make it harder for the central bank to control money flow. The concern isn’t about the technology itself but about losing a grip on the nation’s payment system.

In practice, the ban means that any business offering a crypto address for goods, services, or tuition can be fined. The fine amount-150‑200millionVND-matches the penalty for other illegal financial activities, signaling how seriously the regulator treats the breach.

How the Fine Is Enforced: Real‑World Cases

Before the 2018 deadline, a Vietnamese university announced plans to accept Bitcoin for tuition. The SBV quickly intervened, issuing a warning that the move would violate Decree No.96. The university scrapped the idea, avoiding the fine.

In November 2019, the SBV announced additional penal sanctions against merchants caught using crypto payments, though exact numbers weren’t disclosed. Most enforcement actions target visible, high‑profile attempts-restaurants, online stores, or educational institutions-rather than the countless peer‑to‑peer trades that happen on private messaging apps.

Community forums like Bitcoin Vietnam News show users still trading privately, carefully avoiding any transaction that could be traced to a formal merchant. That underground resilience suggests enforcement is technically possible but practically limited.

Comparison with Neighboring Countries

The contrast is clear. Thailand and Singapore see crypto as a potential financial service that can be supervised, while Vietnam treats it as an illegal payment channel that must be punished.

Practical Steps for Businesses in Vietnam

1. Remove any crypto address from your website, point‑of‑sale, or invoices.
2. Train staff to decline crypto‑based payments and to explain the legal reason politely.
3. Implement a compliance checklist: verify that all payment methods are on the SBV‑approved list (checks, bank cards, e‑wallets).
4. If you already hold crypto assets, keep them separate from payment operations-treat them as investment holdings, not as a transaction medium.
5. Monitor SBV announcements for any policy shifts; the 2022 Monetary Policy Report reiterated the ban, but future drafts hint at possible tax‑related reforms.

Following these steps helps you stay clear of the 150‑200millionVND fine and shows regulators that you respect the current legal framework.

Future Outlook: Is the Ban Likely to Change?

In December 2021, a Draft Decree on Management of Virtual Assets kept the payment ban but proposed treating crypto as an asset class for tax purposes. The 2022 Ministry of Finance Draft Circular on Tax Management for Virtual Asset Transactions suggested a shift toward recognizing crypto profits for tax reporting.

Experts like Dr. Tran Ngoc Ca former Deputy Director of Vietnam's Academy of Finance argue that while the fine remains enforceable on paper, the rapid growth of crypto usage makes widespread enforcement impractical. This pressure could lead to a more nuanced regime-perhaps a licensing model similar to Thailand’s-or at least clearer tax guidelines.

Until any formal amendment is published, the safe bet is to avoid using crypto for payments altogether.

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