Two contrasting moves this week underline a broader regulatory pivot across Southeast Asia: Vietnam has formally opened applications to license crypto exchanges, while Thailand’s regulator has suspended a high-profile operator after finding a capital shortfall, a signal that the region wants crypto activity, but only on strict, institutional terms.
Southeast Asia’s Crypto Reset: Vietnam Opens Door As Thailand Slams It Shut, Briefly
22 January 2026 - 13:59 CET
By Sandmark staff
Vietnam’s State Securities Commission (SSC) published an announcement on Jan. 20, putting three administrative procedures - licensing, amendment and revocation of crypto-exchange permits - into effect and accepting applications from the same day. The ministry-level rules are the legal backbone of a pilot market announced in September, with VietnamNews reporting further details. Among those are a VNĐ10tn(US$380mn) minimum paid-in capital requirement, an institutional ownership level of at least 65% and timelines that make a first licensed exchange possible as early as March.
The signal is plain: Hanoi wants exchanges to be run by banks, securities houses and well-capitalised tech partners, not lightly-funded startups. Several incumbent financial groups such as SSI, Techcombank, Military Bank and VPBank have already flagged plans to participate once licences are granted.
KuCoin crackdown
Bangkok’s story is the regulatory mirror. Thailand’s Securities and Exchange Commission (SEC) suspended ERX Co. Ltd., which operates as KuCoin Thailand, after finding its capital fell below the statutory maintenance threshold for five working days in late December. Client assets remained intact, the SEC said. According to media reports, KuCoin Thailand has since submitted a corrective plan to the SEC and is pursuing a shareholder restructuring to resolve an internal dispute and recapitalise operations.
Taken together, the episodes show a two-track approach: attract institutional players and tokenization projects, but enforce prudential rules and governance standards that raise the cost of doing business for smaller or poorly run exchanges. Regulators appear to be prioritising market integrity and investor protection as the price of domestic market development.
For international exchanges and local banks, the implication is clear. Vietnam’s capital and ownership thresholds will favour established financial groups and global partners that can bring custody, settlement and AML controls. In Thailand, the KuCoin episode shows that compliance failures, even those driven by shareholder wrangling rather than insolvency, can quickly curtail operations. That combination may accelerate market consolidation in Southeast Asia, pushing trading and institutional activity toward regulated entities.
