Despite banning most cryptocurrency-related activities for businesses and regulatory uncertainty, interest for buying Bitcoin in Vietnam is booming.
And Vietnam – where the annual GDP growth has never gone below 5% since 2000 – could take advantage of the crypto demand to boost the Asian country’s steadily increasing economic growth.
So, in this article, we’ll discuss the current regulatory environment in Vietnam as well as the ways you can buy Bitcoin in the Asian country.
Bitcoin regulation in Vietnam: Uncertainty is present, but market is opening up
Following a $660 million digital currency scam that left numerous Vietnamese in the drench, the Asian nation’s State Securities Commission (SSC) rolled out a ban in July 2018, preventing businesses from cryptocurrency issuing, transacting, or providing digital asset-related brokerage services.
While the 2018 ban has crippled Vietnam’s crypto industry in the short term, the citizens of the country have kept engaging the asset class.
However, the space has started to change in March 2019. Following a partnership between two companies, Vietnamese authorities authorized the first cryptocurrency exchange to operate in the country in the post-crypto ban era.
How to buy Bitcoin in Vietnam: the top methods in 2020
While 2018 July’s ban prohibited certain cryptocurrency-related business activities, it remained legal for citizens to purchase and possess BTC in Vietnam.
So, in this section, we’ll show you all the methods you can use to buy Bitcoin in Vietnam.
Purchase BTC Locally
One method you can use to purchase Bitcoin in Vietnam is to find a local solution. There are two methods to do this; you can either utilize a Bitcoin ATM or an external service, such as LocalBitcoins that connects buyers and sellers based on their locations.
Bitcoin ATMs let you exchange fiat currencies (via cash or credit card payments) to different cryptocurrencies.
The way these machines work is rather straightforward. You set how much BTC you want to purchase and pay the relevant amount of VND via the ATM. If you did everything right, the funds are quickly sent to your Bitcoin wallet address.
According to Coin ATM Radar (a handy tool you can use to find the machines in your area), there are currently four Bitcoin ATMs in Vietnam, all of them located in Ho Chi Minh City.
Normally, Bitcoin ATMs allow users to purchase a limited amount of BTC without identity verification. However, if you reach that limit, most service providers will require you to submit Know Your Customer (KYC) documents to proceed with the transaction.
The downside of BTC ATMs is that they often charge a hefty fee (around 7%) for transactions. Also, if you live outside of Ho Chi Minh City, you have to find other ways to buy Bitcoin.
Connecting with local sellers
If you don’t have a Bitcoin ATM where you live, or you prefer to do business with humans instead of machines, you can use an external service like LocalBitcoins to find BTC sellers in your area.
All you have to do to use this method is to head to the external service’s website, set your location and the amount of BTC you would like to purchase.
The service provider will then list the local sellers as well as the exchange rates they offer for BTC-VND trades.
After choosing your ideal Bitcoin seller, you can proceed with sending them a trade request with the amount of BTC you seek to purchase.
If the seller agrees to the trade, they will then send you the instructions to buy Bitcoin. After the transaction is complete, the BTC will be credited to your wallet address.
While connecting with local sellers is a viable method to buy Bitcoin in Vietnam, the rates are often higher than with other methods.
Also, as you conduct local transactions without the oversight of the service provider, you should always do your own due diligence to avoid scams and ensure the security of your funds.
Buy Bitcoin on a cryptocurrency exchange
Normally, using a cryptocurrency exchange is the easiest and cheapest way to purchase BTC. However, the 2018 crypto ban makes things a bit complicated for Vietnamese customers as the number of exchanges where Bitcoin trading is available is very limited.
To tackle this problem, cryptocurrency exchange AAX has created an OTC platform where Vietnamese citizens can easily purchase Bitcoin.
OTC stands for over-the-counter where sellers and buyers are
connected and where they can trade on a peer-to-peer basis, in a fast and
Simply put, OTC trading on AAX works like local Bitcoin trading services with the major difference that we provide oversight as a third-party to guarantee that both the seller and buyer stick to their end of the deal.
Another benefit of the AAX OTC platform is that – unlike on Localbitcoins – you don’t have to worry about choosing the seller you want to trade with as we will automatically match you with one after placing your order.
How to buy Bitcoin on AAX’s OTC marketplace?
Currently, you can use Hong Kong dollar, Chinese Yuan, and the US Dollar to purchase Bitcoin, Ethereum, and USDT on our OTC marketplace.
While we do not support VND natively (yet), you can easily exchange your national currency to a supported one when using one of the payment methods to purchase Bitcoin.
Below you can find the exact steps you need to take to buy Bitcoin on AAX OTC:
For more information on OTC trading at AAX, we recommend reading the following guide.
Vietnam: Is it time for crypto (Again)?
While the government had adopted a cautious stance on crypto in the past, many saw the authorization of the first legal Vietnamese cryptocurrency exchange as a new start for the nation’s digital asset industry.
As a result, business interest in the Vietnamese crypto market has started to grow, with major industry players like Binance developing new digital asset services for the citizens of the Asian country.
Although the country still lacks a regulatory framework for the crypto industry, more blockchain companies could soon follow the footsteps of the above-mentioned companies to enter the Vietnamese market.
And that would present a great opportunity for the Vietnamese economy as a booming crypto market could help facilitate its growth.
If you are interested in buying Bitcoin in Vietnam, we recommend checking out AAX’s OTC platform where you can exchange fiat to BTC in a fast and secure way.