Vietnam's Digital Asset Exchanges and the Token Issuance Question: Reality or Illusion?
As exchanges across Southeast Asia shift their focus from token issuance toward building infrastructure and achieving regulatory compliance, the prospect of Vietnamese exchanges launching their own tokens in the near term is looking increasingly remote.
In recent years, issuing a proprietary token was widely regarded as the "golden formula" for digital asset exchanges looking to attract users, boost liquidity, and build out their ecosystems. Yet across Southeast Asia broadly — and Vietnam in particular — this trend is running into serious headwinds as regulatory compliance requirements grow ever more demanding.
Global Context: Exchange Tokens Are Cooling Off
On the global stage, exchange tokens like BNB (Binance), FTT (FTX, before its collapse), and OKB (OKX) once generated enormous momentum. These tokens weren't simply trading instruments — they functioned as utility tokens, offering perks such as discounted trading fees, access to early-stage investment programs (launchpads), and governance voting rights within their ecosystems.
However, following the collapse of FTX in late 2022, both the broader community and regulators have taken a far more cautious view of exchange tokens. Many jurisdictions began tightening the rules, particularly around tokens that exhibit characteristics of a security or that are tied to an exchange's governance structure.
The Southeast Asia Landscape: Compliance Over Tokens
Singapore: The Region's Compliance Benchmark
Singapore, backed by a clear regulatory framework under the Payment Services Act, has established itself as the region's leading fintech hub. Exchanges operating there — such as Coinhako and Gemini Singapore — have concentrated on building compliance-grade infrastructure rather than issuing proprietary tokens.
The core reason: Singapore imposes strict requirements around Anti-Money Laundering (AML) and Know Your Customer (KYC). Issuing a token introduces additional legal risk and complicates the licensing process.
Thailand and the Philippines: Cautious on Proprietary Tokens
In Thailand, despite a relatively open regulatory framework for digital assets, exchanges such as Zipmex and Bitkub have yet to make any clear moves toward issuing their own tokens. The primary driver is the Thai Securities and Exchange Commission (SEC)'s requirement that tokens be explicitly classified as either utility or security tokens.
The Philippines, which licenses entities as Virtual Asset Service Providers (VASPs), has taken a similarly cautious stance. Exchanges like PDAX have focused on expanding their service offerings and building credibility rather than launching tokens.
The Situation in Vietnam: Regulatory Barriers
An Incomplete Legal Framework
Vietnam is still in the process of building out a comprehensive legal framework for digital assets. While the State Bank of Vietnam has signaled interest in a pilot sandbox for digital assets, token issuance remains squarely in a legal gray zone.
Vietnamese exchanges — like other projects still finding their footing — must carefully weigh the legal risks. Issuing a token could be interpreted as offering unregistered securities or as a violation of electronic payment regulations.
Capital and Technology Challenges
Unlike giants such as Binance or OKX, Vietnamese exchanges typically operate at a smaller scale with limited capital. Launching a token demands not just financial resources but also dedicated legal teams and deep blockchain engineering expertise.
Beyond that, for a token to hold real value, the exchange needs a sufficiently large ecosystem — one spanning services like staking, lending, and an NFT marketplace. That level of buildout requires sustained time and long-term investment.
The Alternative Path: Services and Infrastructure First
The "Infrastructure-First" Model
Rather than pursuing token issuance, exchanges across Southeast Asia are pivoting to an "infrastructure-first" model — one that prioritizes building:
- Stable, highly secure technology infrastructure
- Robust compliance systems covering AML/KYC
- Professional customer service
- A diverse product suite including spot trading, futures, and options
Learning From Traditional Finance
Many industry experts argue that exchanges should take their cues from traditional stock exchanges. Instead of issuing proprietary tokens, they can create value through:
- Loyalty programs built on reward points
- Discounted trading fees for VIP clients
- Professional investment advisory services
- Innovative financial products
Impact on the Market and Investors
Vietnamese exchanges holding off on token issuance in the near term carries both upsides and downsides:
Positive impacts:
- Reduces investor exposure to highly speculative tokens
- Builds greater credibility around regulatory compliance
- Channels investment toward sustainable infrastructure
Negative impacts:
- Fewer marketing tools and user acquisition levers
- Harder to compete against international exchanges that have their own tokens
- Limits access to capital that a token sale would otherwise provide
Future Outlook
Over the medium to long term, the possibility of Vietnamese exchanges issuing tokens hasn't disappeared entirely — but several conditions would need to be in place first:
- A clear legal framework from regulators
- A market large enough to support a token
- A diverse, genuinely valuable service ecosystem
- Buy-in from the broader community and investors
Experts predict that if exchange tokens do emerge in Vietnam, they will carry clearly defined utility characteristics and comply strictly with applicable regulations — a far cry from the speculative nature of some earlier exchange tokens.
In short, while token issuance was once a powerful trend among digital asset exchanges, the reality on the ground in Southeast Asia and Vietnam shows that operators are now prioritizing sustainability and regulatory compliance over fast-growth shortcuts. This may slow token launches in the near term, but it lays a much more durable foundation for the long-term development of the digital asset industry across the region.