When foreign exchanges are not licensed in Vietnam: Personal data and actual risks

In the context of Vietnam gradually establishing a legal framework for the digital asset market, a common question arises: if an international exchange does not have a license to operate domestically, can authorities compel it to disclose user information? The answer is not as straightforward as it seems.

Foreign Exchanges and “Freedom” of Data in Vietnam

According to international legal principles, a foreign company without legal entity status or licensing in Vietnam will not be bound by all domestic legal regulations — at least not directly. This means that to request data from a foreign exchange, Vietnamese authorities need a solid legal basis, such as:

• International legal requests (letters rogatory)
• Judicial cooperation agreements between countries
• Or voluntary cooperation from the exchange itself

Not every “lack of license” means regulators can freely access data.

Reality: Exchanges Have Previously Handed Over User Data

However, history shows that international exchanges have multiple times provided transaction records and verified identity information (KYC) to authorities in various countries — especially when valid legal requests related to money laundering, tax evasion, or major legal cases are involved.

This precedent indicates that if Vietnam signs information-sharing agreements with international exchanges, or if these exchanges are licensed in Vietnam in the future, accessing user data will become feasible.

New Legal Framework in Vietnam: Key Changes

The Vietnamese government has just announced a pilot resolution on the digital asset market with a 5-year term. During this period, activities providing digital asset trading services will be monitored, requiring compliance with KYC/AML regulations, periodic reporting, and tax obligations.

This means: if an international exchange wants to serve Vietnamese users legally, it will need to obtain a license and accept Vietnam’s data control requirements.

Risk Comparison: P2P, Exchange Trading, and Blockchain

When it comes to personal “safety,” it’s important to distinguish between different transaction channels:

P2P (buy and sell via bank transfer): VND flows through domestic banking systems, where authorities have strong oversight. This is the easiest channel to trace.

Trading on international exchanges (KYC accounts): The exchange knows your identity, but if it’s not licensed in Vietnam, local authorities cannot directly compel data disclosure through domestic laws. However, on-chain records (on the blockchain) remain public, allowing anyone to track transactions between wallet addresses.

On-chain transparency: Although names are not displayed, all transactions are publicly recorded on the ledger.

Conclusion and Practical Guidance

In summary: if a foreign exchange is not licensed to operate in Vietnam, the government does not automatically have the authority to compel data collection from that exchange — but this does not mean full protection.

International exchanges still store internal KYC information; on-chain transactions are public; and history shows that exchanges will provide data when valid international legal requests are made. Users should be aware of these risks when participating in digital asset trading.