Directive 05/CT-TTg: What It Means for Crypto Regulations in Vietnam

When you hear Directive 05/CT-TTg, a 2018 circular issued by Vietnam’s State Bank that banned cryptocurrency payments and trading activities. Also known as Circular 05, it didn’t make owning Bitcoin illegal—but it shut down every exchange, wallet service, and payment gateway trying to operate legally inside Vietnam. This wasn’t a full crypto ban. It was a targeted strike against infrastructure: banks couldn’t process crypto transactions, businesses couldn’t accept it as payment, and platforms couldn’t offer trading services. The goal? Prevent financial instability and protect consumers from unregulated risk. But millions of Vietnamese still held crypto anyway—mostly through P2P platforms, offshore exchanges, and cash trades.

Behind Directive 05/CT-TTg, a policy designed to control financial flows. Also known as State Bank Circular 05, it created a gray zone where holding crypto was tolerated but using it was risky. That’s why you see posts here about Egypt crypto ban, a similar hardline approach that froze assets and chased out startups, or Hong Kong's Virtual Assets Ordinance 2025, a completely opposite model that licenses exchanges and protects users. While Egypt shut the door and locked it, Vietnam left the window cracked—enough for P2P traders to thrive, but not enough for legit businesses to build on.

Today, Directive 05/CT-TTg still hangs over Vietnam’s crypto scene. No licenses have been issued. No legal framework replaced it. Yet, Vietnam ranks among the top 10 countries in global crypto adoption, according to Chainalysis. Why? Because people found ways around it. Local traders use local currency via P2P platforms like Paxful or LocalBitcoins. Investors hold crypto in non-Vietnamese wallets. Startups move operations to Singapore or Thailand. The regulation didn’t kill crypto—it forced it underground. And that’s exactly why this collection includes posts on Cuba cryptocurrency, a country that legalized crypto out of necessity, and Slex Exchange, a platform with no regulation but real users. They’re all part of the same story: when governments block access, innovation finds a backdoor.

What you’ll find below are real stories from people who lived under this policy. Posts about fake DEXs pretending to be Vietnamese platforms. Airdrops targeting Vietnamese users with fake KYC forms. Exchanges that vanished overnight after being flagged by local authorities. And one post that breaks down exactly how the State Bank tracks crypto-related bank transfers. This isn’t theory. It’s what happened. And it’s still happening.