Illustration of popular cryptocurrencies and regulations in China - Photo: Reuters
Chinese tech giants Ant Group and JD.com on October 19th temporarily halted plans to launch stablecoins in Hong Kong, after mainland China expressed concerns about the rise of privately controlled currencies.
So what is China doing with crypto, and what can Vietnam learn from its giant neighbor?
From "crypto mining paradise" to forbidden zone
Just a few years ago, China accounted for over 70% of global Bitcoin mining activity. Provinces like Sichuan and Xinjiang were once the "holy grails" of cryptocurrency mining farms.
But in 2021, Beijing unexpectedly shifted course, issuing a comprehensive ban. The reasons were not only China's concerns about financial risks, but also about cybersecurity, environmental pollution, and capital flow control.
By May 2025, the restrictions will be even tighter. Not only will trading, owning, or mining crypto be prohibited, but China will also issue regulations banning technology platforms from providing crypto prices or promoting cryptocurrencies in any form.
In other words, Beijing has slammed the door shut on all activities related to decentralized cryptocurrencies – from Bitcoin and Ethereum to Dogecoin.
In the eyes of the current Chinese government, crypto is not a democratic financial revolution, but rather a "threat that could shake the foundations of the national monetary system."
However, in contrast to the mainland, Hong Kong has been given the "green light" by Beijing to experiment with new forms of digital currency, but under very tight control.
In May 2025, the Hong Kong Legislative Council passed the Stablecoins Ordinance Act, allowing companies to apply for licenses to issue stablecoins. However, this legal framework is so stringent that many businesses find it "very difficult to breathe."
On the one hand, China wants to encourage blockchain technology as a driver of innovation. On the other hand, they do not allow any form of crypto to escape state control.
Hong Kong thus became a "controlled laboratory," where Beijing observed, assessed, and intervened when necessary.
The recent suspension of stablecoin issuance plans in Hong Kong by Alibaba (through Ant Group) and JD.com once again demonstrates China's desire to further tighten its control over crypto.
The reason is simple: Beijing doesn't want currency to become a "private playground." The People's Bank of China (PBoC) is concerned that stablecoins will create loopholes in capital controls and pose risks to the national monetary system.
The withdrawal of these tech giants sends a signal to the entire market: China does not want anyone, including domestic businesses, to tamper with its currency without state direction.
Suggestions for Vietnam
In Vietnam, crypto is at a "potential explosion point." The rate of crypto users in Vietnam is among the highest in the region, largely driven by investment activities and the "play-to-earn" model. However, to date, regulatory policies remain cautious and lack a comprehensive legal framework.
In September 2025, the government issued Resolution 05/2025 allowing for a pilot program to license crypto exchanges within the framework of the Digital Technology Law. However, the high minimum capital requirement (approximately $379 million) and the ban on stablecoins have prevented any businesses from registering.
However, Vietnam can still draw some principles for itself from China's experience.
First, protection comes first, innovation second. Crypto may be attractive, but it also carries significant risks such as money laundering, fraud, price manipulation, and impacts on financial security. Vietnam needs to establish a solid "legal framework" before fully opening up.
Secondly, while encouraging blockchain, we should exercise restraint. We shouldn't lump crypto and platform technologies together. Vietnam should promote blockchain applications in agriculture , healthcare, and finance, not just for cryptocurrency mining.
Thirdly, learn from e-CNY (digital yuan). Vietnam can certainly research issuing digital VND to modernize its payment system, support digital transformation, and enhance financial sovereignty .
Finally , create a sandbox (a controlled testing mechanism) in Ho Chi Minh City or Hanoi. Instead of a complete ban, Vietnam could establish a pilot area with strict regulations for companies to test stablecoins or blockchain products in a controlled environment.
Crypto is a trend, but not everyone can achieve it. China has chosen its own path: tightening control and building its own digital version. This doesn't mean Vietnam has to follow suit, but it can't ignore it either.
Instead of blindly following trends or imposing unconditional bans, Vietnam should choose a path of "balancing innovation and safety," where technology serves national interests, rather than plunging the country into a global gambling game.
In the digital age, cryptocurrency policy is not just a technical issue but a strategic test for each nation. And Vietnam, if it does it right, can absolutely turn this challenge into a springboard for the digital economy to flourish.
China tests e-CNY currency.
Despite the bans, China makes no secret of its ambition to become a leader in state-issued digital currencies (CBDCs). The e-CNY (digital yuan) is being tested in more than 20 cities, with total transaction value exceeding 100 billion yuan.
This is not "crypto" in the traditional sense. e-CNY is not decentralized, not anonymous, and is entirely controlled by the PBOC.
But it allows Beijing to achieve important strategic goals: tighter control over money flows; reduced dependence on the US-dominated international payment system; and progress toward the "de-dollarization" of cross-border trade.
While free-market cryptocurrencies are often labeled "risky," e-CNY is being developed as a "targeted" alternative. This is how China is creating its own version of "purely Chinese crypto," one that doesn't require decentralization but still boasts ambitious international reach.
Source: https://tuoitre.vn/quan-ly-crypto-bai-hoc-tu-trung-quoc-20251021093120728.htm
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