Bitcoin’s Crash Sends Vietnam’s Once-Booming Crypto Industry Into Turmoil

The ongoing crypto winter has left many Bitcoin traders in Vietnam with unwanted experiences. Bitcoin’s decline to below $60,000, reflecting more than 50% drawdown from an all-time high of over $126,000, has left many Vietnamese crypto speculators with sour tastes.

Losing is a Part of Learning

Despite his losses, one such Bitcoin trader in Vietnam, Hoang Le, a computer science student in Hanoi, described the experience as a learning curve, saying he has come to think of the losses as “tuition fees.”

Le started trading Bitcoin from his university dorm room, egged on by his gamer friends. He grew his portfolio to $200,000, approximately 50 times the average annual income in Vietnam. However, the latest Bitcoin decline saw his balance crash to zero, in a situation common among most traders in the region where crypto regulation remains unclear.

There are no Strict Crypto Rules in Vietnam

For context, Vietnamese authorities have allowed blockchain technology to develop in a grey area. Residents within the region can speculate on digital asset prices, but cannot use the products for payment. This is in contrast to the approach in neighboring China, where cryptocurrency is banned outright.

Notably, the flexible regulatory approach in Vietnam encouraged a significant portion of its 100 million population to be involved in cryptocurrency activities. According to reports, an estimated 17 million people hold digital assets in the Asian country. A 2025 Chainalysis report reveals that only India, the United States, and Pakistan have seen more widespread crypto usage.

When Flexibility Becomes a Liability

In the meantime, the massive Bitcoin price decline of the past months has made Vietnam’s flexible regulatory approach look like a liability. Many startups engaging in crypto trading have been affected, leading to bankruptcies and layoffs in a roiling industry.

Speaking in the development, Tran Xuan Tien, head of Ho Chi Minh City’s blockchain association, said that many companies have shut down due to the crisis in the cryptocurrency market. Tien noted that the remaining companies are downsizing and conserving capital to extend their runway.

Nguyen The Vinh, co-founder of blockchain firm Ninety Eight, foresees a more gloomy future for the crypto industry. According to Vinh, the market will likely remain difficult for years, causing his firm to seek backup plans. It is worth noting that Ninety Eight has laid off nearly one-third of its staff since last year.

Related: Vietnam Launches Pilot Licensing Regime for Crypto Exchanges

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