Vietnamese Digital Asset Exchanges and the Token Issuance Question: Reality or Illusion?
As exchanges across Southeast Asia shift focus from token issuance to building infrastructure and achieving regulatory compliance, the prospect of Vietnamese exchanges launching their own tokens in the near future is growing increasingly dim.
In recent years, issuing a native token was considered the "golden formula" for digital asset exchanges looking to attract users, boost liquidity, and build out their ecosystems. However, across Southeast Asia — and Vietnam in particular — this trend is running into significant 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 were never just trading instruments — they functioned as utility tokens, offering perks like discounted trading fees, access to early-stage investment programs (launchpads), and governance voting rights within their ecosystems.
But after FTX's collapse in late 2022, both the broader community and regulators took a far more cautious view of exchange tokens. Many countries began tightening their rules, particularly around tokens that carry characteristics of a security or that are tied to exchange governance.
Southeast Asia Today: Compliance Over Tokens
Singapore: The Regional Leader in Compliance
Singapore, backed by a well-defined regulatory framework through the Payment Services Act, has become the region's top fintech hub. Exchanges operating there — such as Coinhako and Gemini Singapore — are focused on building compliant infrastructure rather than launching proprietary tokens.
The primary reason: Singapore holds exchanges to strict Anti-Money Laundering (AML) and Know Your Customer (KYC) standards. Issuing a token would create additional legal exposure and complicate the licensing process.
Thailand and the Philippines: Cautious on Native Tokens
In Thailand, despite a relatively open regulatory stance on digital assets, exchanges like Zipmex and Bitkub have not made any clear moves toward issuing their own tokens. The main reason is the requirement from Thailand's Securities and Exchange Commission (SEC) that tokens be clearly classified as either utility or security instruments.
The Philippines, which licenses Virtual Asset Service Providers (VASPs), shows the same caution. Exchanges like PDAX are focused on expanding their services and building credibility rather than launching tokens.
Vietnam's Situation: Regulatory Barriers
An Incomplete Legal Framework
Vietnam is still in the process of developing a comprehensive regulatory framework for digital assets. While the State Bank of Vietnam has outlined a direction for a digital asset pilot sandbox, token issuance remains in a legal gray zone.
Exchanges operating in Vietnam must carefully weigh their legal exposure. Issuing a token could be treated as an unregistered security offering or a violation of electronic payment regulations.
Capital and Technology Challenges
Unlike giants like Binance or OKX, Vietnamese exchanges tend to operate at a smaller scale with limited capital. Launching a token requires not just financial resources but also dedicated legal teams and deep blockchain engineering expertise.
On top of that, for a token to have real value, an exchange needs a large enough ecosystem with diverse services — staking, lending, NFT marketplaces, and more. That demands significant time and long-term investment.
The Alternative Path: Focus on Services and Infrastructure
The "Infrastructure-First" Model
Rather than centering their strategy on token issuance, exchanges across Southeast Asia are shifting toward an "Infrastructure-first" model. That means prioritizing investment in:
- Technology infrastructure that is stable and highly secure
- Full compliance systems covering AML/KYC
- Professional customer service
- A broad product suite including spot trading, futures, and options
Learning from Traditional Models
Many industry experts argue that exchanges should look to traditional stock exchanges as a model. Instead of issuing 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 positive and negative implications:
Positive impacts:
- Reduced investor exposure to highly speculative tokens
- Greater credibility around regulatory compliance
- Encourages investment in sustainable infrastructure
Negative impacts:
- Fewer marketing tools and user acquisition levers
- Harder to compete against international exchanges that have native tokens
- Loss of potential capital that token sales could otherwise raise
Future Outlook
Over the medium to long term, token issuance by Vietnamese exchanges remains possible — but a number of conditions would need to be met first:
- Clear regulatory guidance from governing authorities
- A large enough market to sustain a token
- A diverse service ecosystem with genuine utility
- Acceptance from the community and investors
Experts predict that if exchange tokens do emerge in Vietnam, they will carry clearly defined utility characteristics and adhere strictly to legal requirements — a far cry from the speculative nature of some earlier exchange tokens.
In short, while token issuance was once a dominant trend among digital asset exchanges, the reality 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 solid foundation for the long-term development of the digital asset industry across the region.