Vietnam crypto crash hits startups, 17 million investors affected

Cryptocurrency is crashing hard in Vietnam.

Local startups are bearing the brunt, with layoffs mounting and funding drying up. The country had 17 million digital asset holders at the beginning of 2025, ranking just behind India, the United States, and Pakistan. But this enviable position does not shield against the sharp price drops now shaking the entire Vietnamese ecosystem. Local exchange platforms are seeing volumes plummet as investors panic and sell off their positions en masse.

No respite for businesses.

Nguyen Thanh runs a crypto startup in Hanoi. He doesn’t mince words: “It’s a nightmare for all of us.” His company, like many others, had bet everything on growth that seemed endless. Promises of quick returns are now evaporating in the face of market reality. Institutional investors are fleeing, individuals are losing their savings, and the optimism of the early months is giving way to widespread distrust. Thanh has already had to cut staff. No choice.

Regulators remain silent for now. They are watching, analyzing, but not announcing anything concrete. The sector is waiting for answers that aren’t coming. An emergency meeting is scheduled at the central bank, but no one knows what will come of it. Companies are navigating blindly, unsure if new regulations will drop tomorrow or in six months.

Even international giants are feeling the impact. Binance and Coinbase are seeing their Vietnamese operations plunge, with trading volumes dropping week after week. Both platforms declined to comment on their strategy in response to this crisis, but the numbers speak for themselves. Local traders are turning away from international exchanges, sometimes opting to exit the market entirely rather than continue losing.

On February 15, 2026, Le Minh Khai held a press conference in Hanoi. The Finance Minister expressed his concerns: “We must act cautiously to protect our citizens.” Discussions on potential government interventions are accelerating, but nothing specific has been decided yet. Khai seems to want to avoid a broader panic while keeping his options open. Related coverage: Young Crypto Fraudster Gets 375-Year Prison.

BitHanoi suspended operations on February 14.

The platform, one of the country’s largest, chose to temporarily halt transactions rather than let panic set in. Users are, of course, complaining, but management hopes this pause will calm things down. Pham Thi Hoa, 29, an investor for three years, sums up the mood: “I thought it was a future opportunity, but now I’m worried about my savings.” She is among the 60% of Vietnamese holders considering selling everything, according to a survey by the Hanoi Economic Research Institute.

The Ho Chi Minh City Stock Exchange is not immune to the contagion. On February 17, shares of tech companies linked to crypto plunged by an average of 12%. Nguyen Van Binh, a financial analyst, sees investors “reacting impulsively, which exacerbates market fluctuations.” Volumes are three times higher than normal, a sign of real panic.

Tran Quoc Vu was leading CryptoViet, a startup that was doing quite well before. He laid off 40% of his staff on February 18. “We must cut costs to survive,” he said in an interview. Vu is not alone – layoffs are multiplying across the sector, especially affecting developers and marketing teams that seemed indispensable just a few months ago.

A group of institutional investors requested a meeting with the Ministry of Justice on February 19. They want to clarify the legal framework around crypto transactions, to know where they stand. The ministry has not yet set a date, which doesn’t help the general atmosphere. Everyone is waiting for clear signals from the government. This follows earlier reporting on Federal Jury Nails Crypto Ponzi Boss.

The numbers continue to plummet. A report from the State Bank on February 20 shows a 25% drop in crypto deposits since the start of the crisis. VietCapital, a financial advisory firm, saw the crypto portion of its clients’ portfolios drop from 15% to 7% in just two weeks. Hoang Minh, the CEO, speaks of a “rapid asset rebalancing” – a polite way of saying his clients are panicking.

VNExchange has lost 30% of new registrations since the crisis began, according to a statement on February 22. The platform is working on strengthening security to regain trust, but without a specific timeline. Users remain wary.

Deputy Tran Duc Thao expressed concern for young entrepreneurs during a parliamentary session on February 23: “Many of them have staked their future on this industry.” Lawmakers are discussing possible support measures, but nothing concrete has emerged yet. The National University of Vietnam notes a 40% drop in interest in blockchain courses compared to last year. Professor Le Thi Mai observes that “confidence in the tech sector is shaken,” without knowing how long it will last.

The Vietnam Association of Technology Enterprises has already recorded 23 permanent closures since early February, mainly affecting startups less than two years old. These young companies, which collectively raised $180 million in 2025, find themselves without the liquidity to meet their commitments. Several incubators in Hanoi and Ho Chi Minh City have suspended their crypto support programs, redirecting their efforts toward artificial intelligence and traditional fintech.

Vietnamese banks are also tightening their stance. Vietcombank and BIDV have quietly restricted transfers to exchange platforms since February 21, forcing investors to bypass these limitations through more costly methods. This banking strategy, not officially announced, further complicates transactions for individuals wishing to exit their crypto positions.