Vietnam’s MB Bank and UpBit’s parent Build Crypto Exchange

Vietnamese state-controlled bank Military Bank (MB) plans to launch a regulated crypto exchange in partnership with Dunamu, the parent company of South Korean crypto exchange Upbit.

According to a Wednesday announcement from Dunamu, the company has signed a memorandum of understanding with Military Bank. In a Facebook post, Military Bank said Dunamu will support it building a cryptocurrency exchange in Vietnam with its technology.

“MB and Upbit will be trusted partners, working together to promote Vietnam’s digital financial market,” Military Bank Chairman Luu Trung Thai said.

Military Bank is a financial institution under the Vietnamese Ministry of National Defense, making the crypto exchange a government-led initiative.

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Vietnam’s crypto regulation takes shape

In March, Deputy Minister of Finance Nguyen Duc Chi announced a pilot program for financial technology companies in Vietnam, including crypto exchanges. According to the official online newspaper of the local government, Deputy Governor of the State Bank of Vietnam (SBV) Pham Tien Dung announced during an event held earlier this month that Vietnam has officially established a legal framework for digital assets, including tokenized assets.

The leadership of SBV — the country’s central bank — noted that the pilot program submitted in March by the Deputy Finance Minister was key to the development. The other two elements necessary were a resolution submitted by the National Assembly and a law on industry and digital technology.

“We’re acting through law to facilitate investment and business in this sector,” SBV’s Dung said.

Vietnam’s crypto exchanges will be piloted at an international financial center. Still, the pilot scheme is being finalized, and multiple exchanges will be allowed, according to the Ministry of Finance.

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The first regulated crypto exchange in Vietnam?

While some reports suggested that this is Vietnam’s first domestic crypto exchange, this is incorrect. The country currently hosts BitcoinVN, a no-sign-up instant exchange that supports Bitcoin (BTC), Ether (ETH), USDt (USDT) and Ginero, operated by Bitcoin Vietnam.

Nami.Exchange also offers both spot and futures crypto trading as part of Nami Technology JSC, a Vietnam-registered company.

Still, with Vietnam’s pilot regulatory regime likely to result in licensing requirements in the future, Military Bank’s crypto exchange could become the first regulated exchange under the new framework.

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