A new crypto law introduced by Manhattan District Attorney Alvin Bragg and New York State Senator Zellnor Myrie would convert unlicensed virtual currency operations from a civil regulatory issue into a criminal offense, carrying up to 15 years in prison for operators moving $1 million or more in a single year.

The announcement from the Manhattan DA’s office frames the legislation as a correction to the gap between New York’s existing BitLicense framework, which requires registration for crypto businesses, and the complete absence of criminal consequence for ignoring that requirement. Bragg told an audience at New York Law School that the crypto space needs accountability “on steroids.” Currently, unlicensed crypto operators in New York face only civil penalties. The CRYPTO Act would change that structure entirely, aligning the state with the majority of US jurisdictions that already criminalize the same conduct.

Any unlicensed virtual currency operation begins as a Class A misdemeanor. The charge escalates to a Class E felony once a business moves $25,000 or more within 30 days, or $250,000 or more in a year. A Class C felony, the top tier, applies to $1 million or more in a year and carries a maximum of 5 to 15 years in prison. Bragg made the stakes explicit: “Crypto is the go-to means for bad actors to move and hide the proceeds of crime. It is long past time for businesses that operate without a virtual currency license and flout due diligence requirements to face criminal penalties.”

Why New York Is Moving While Washington Steps Back

The Trump DOJ disbanded its National Cryptocurrency Enforcement Team in April 2025, directing federal prosecutors to focus on terrorism and drug cases rather than unlicensed money transmission or exchange level violations. Six Democratic senators have since challenged that decision as a conflict of interest. New York is moving in the opposite direction at the state level, asserting that the federal retreat has created a gap that state prosecutors must now fill using criminal law rather than civil penalties alone.

What the Bill Still Needs to Become Law

As crypto.news has reported, the federal regulatory framework for crypto is being built out under GENIUS Act implementation, with the FDIC, OCC, and Treasury each advancing separate rulemaking processes that apply only to licensed entities. As crypto.news has noted, the GENIUS Act’s compliance architecture leaves unlicensed operators in a regulatory blind spot, precisely the gap the CRYPTO Act targets through state criminal law. The bill still requires passage through the New York State legislature, and a legislative timeline has not been announced.

CAEX, a crypto platform tied to the Vietnam Prosperity Joint Stock Commercial Bank (VPBank) ecosystem, has secured strategic backing from OKX Ventures and HashKey as it pursues participation in Vietnam’s pilot regime for crypto exchanges. The announcement positions CAEX to join VPBank Securities (VPBankS) and technology partner LynkiD as shareholders and aims to help the firm meet Vietnam’s minimum charter capital threshold of 10 trillion dong (about $380 million), a prerequisite for entering the pilot program.

According to a release shared with Cointelegraph, OKX Ventures and HashKey will supplement existing shareholders as CAEX eyes the regulatory milestone necessary to qualify for the five-year pilot, which is designed to tightly regulate digital asset activity while expanding the legitimate onshore market.

Key takeaways

• Vietnam’s five-year crypto pilot will license only a small number of exchanges; the window for licensing opened on January 20, with a cap of five licensed operators.
• The regulatory framework imposes a foreign ownership limit of 49% and requires at least 65% of capital to be held by institutional shareholders, creating substantial entry barriers for new players, even those backed by banks.
• CAEX’s new backing from OKX Ventures and HashKey aims to reach the 10 trillion dong charter capital, a core condition to participate in the pilot.
• OKX described its role as strategic, focusing on ensuring CAEX has the financial strength and technical capabilities to meet both user expectations and regulatory standards, while keeping details of investment undisclosed.
• Vietnam’s crypto market has surged in adoption, but regulators have tightened oversight amid fraud probes and external pressure to curb unlicensed offshore platforms.

Backing with capital to clear regulatory hurdles

CAEX’s funding arrangement signals a concerted push to clear a central gating factor for the pilot: charter capital. The company has been working to raise the mandated 10 trillion dong threshold, a measure designed to ensure onshore exchanges have robust financial firepower before serving Vietnamese users. OKX, as a strategic partner, indicated that the investment will be deployed to bolster CAEX’s ability to meet both the capital and capability requirements, including areas such as technical infrastructure, security, compliance, and risk management. The spokesperson noted that the size of the investment and the exact stake in CAEX could not be disclosed, and declined to comment on whether the funding confirms selection in the pilot, emphasizing that the process remains regulated and ongoing.

CAEX’s ties to VPBank place the platform within a broader financial ecosystem that the bank envisions expanding into the digital asset space. VPBank has previously signaled a push to bring crypto activity into a regulated framework, with CAEX in the foreground as a potential onshore operator. In recent months, CAEX has been in talks about a charter capital increase to reach the pilot’s capital requirements, a move aligned with VPBank’s broader ambitions in digital asset services. OKX’s role as a strategic partner underscores the emphasis on building a compliant, institution-grade platform capable of meeting the high standards expected in a regulated market.

Regulatory backdrop: Vietnam’s pilot and its strict guardrails

Vietnam’s financial authorities are moving forward with a five-year crypto pilot that aims to balance innovation with consumer protection and financial stability. The pilot will permit a limited number of licensed digital asset service providers to operate exchanges onshore. Officials have underscored that only up to five enterprises will be licensed to run exchanges as part of the program, which opened its licensing window in late January. In addition to the cap on participants, the framework imposes foreign ownership limits of 49% and requires institutional investors to hold at least 65% of each licensed entity’s capital, creating steep thresholds for new entrants—even those aligned with established banks or financial groups.

Authorities have also signaled stricter controls could extend to overseas platforms. Once the first onshore exchanges are operational, the regime may block access to unlicensed overseas exchanges, a move that heightens the stakes for foreign firms seeking a regulated route into Vietnam’s market. The regulatory posture reflects a broader pattern in Asia where regulators are tightening oversight of digital assets while encouraging qualified participants to operate under a formal framework.

Market momentum, risk, and the practical implications for CAEX

Vietnam has emerged as a notable hub of crypto activity, with adoption growth placing the country among the top markets in global rankings. Chainalysis ranked Vietnam fourth in global crypto adoption in 2025, underscoring the potential for a regulated, onshore market to attract user participation and institutional interest. The regulatory move toward a structured pilot aligns with a desire to curb fraud and protect investors, particularly after a period of high-profile scams and investigations within the sector.

Recent enforcement activity in Vietnam has illustrated the risk environment for crypto ventures. In March 2026, authorities detained multiple suspects connected to the ONUS project amid allegations of false promotions and manipulation that allegedly misappropriated billions of dollars of investor funds. While these actions are not specific to CAEX, they underscore the atmosphere in which Vietnam’s regulators are pushing for tighter oversight and greater transparency in digital asset platforms. CAEX’s leadership notes that a regulated framework is a constructive step for the country’s crypto industry, particularly as it seeks to foster innovation within clear compliance boundaries.

For investors and builders, the key takeaway is that entering Vietnam’s onshore market will increasingly depend on meeting rigorous capital and governance standards. CAEX’s collaboration with OKX Ventures and HashKey signals an intent to combine deep liquidity, technical expertise, and robust risk controls with a bank-tied ecosystem to pursue a compliant market entry. The interplay between capital adequacy, regulatory compliance, and strategic partnerships will likely shape which entities ultimately win licenses and how they scale within Vietnam’s five-year plan.

What comes next for CAEX and Vietnam’s crypto sector

If CAEX meets the charter capital threshold and secures a license under the pilot, the company could become one of the few onshore platforms to offer digital asset trading under Vietnam’s regulated framework. The involved parties—CAEX, VPBankS, LynkiD, and strategic backers like OKX and HashKey—will need to navigate ongoing regulatory reviews, capital deployment milestones, and the evolving requirements of supervision authorities.

Beyond CAEX, observers will be watching how other players respond to the regulator’s thresholds, including foreign-backed ventures seeking a foothold in Vietnam’s onshore market. The emphasis on capital strength, institutional ownership, and rigorous governance suggests that the pilot will favor operators with substantial financial and compliance capabilities, potentially skewing the competitive landscape toward bank-affiliated and well-capitalized firms.

As Vietnam charts a cautious path toward crypto innovation, what remains uncertain is the precise timeline for final licensing decisions and how the pilot will evolve over the ensuing years. Regulators may refine capital requirements, adjust ownership caps, or expand the pool of eligible service providers as the ecosystem matures. For CAEX, the immediate milestone is clear: secure the requisite capital and complete the regulatory steps to enter Vietnam’s carefully calibrated onshore regime.

Observers should keep an eye on the regulatory timetable, the outcomes of CAEX’s capital-raise efforts, and any further disclosures from the participating banks and strategic partners about their roles in developing a compliant, scalable crypto exchange in Vietnam.

Vietnam’s dynamic market remains a focal point for crypto innovation in Southeast Asia. With authorities signaling a pragmatic approach to regulation and industry players aligning capital, technology, and governance, the coming months will be critical in determining which platforms emerge as credible, licensed onshore options for Vietnamese users and global participants alike.

As always, readers should monitor regulatory developments, licensing announcements, and the evolving stance of both domestic and international players seeking a legitimate foothold in Vietnam’s regulated crypto landscape.

OKX Ventures and HashKey Capital are backing a new Vietnam-based crypto exchange as Hanoi accelerates efforts to bring one of the world’s most active retail crypto markets under formal regulation.

Vietnam Prosperity Crypto Asset Exchange (CAEX) said Friday that the two firms have agreed to invest and become strategic partners alongside founding shareholders VPBank Securities and digital-identity firm LynkiD.

The funding will bring CAEX’s capital base to VND 10 trillion — roughly $380 million — the minimum needed to enter a government pilot program for regulated crypto trading under Resolution 05/2025.

The deal lands as Vietnam’s Digital Technology Industry Law, which took effect in January, formally recognized crypto assets and laid the legal groundwork for licensing, oversight, and industry incentives. Now regulators are pushing to shift activity onshore through a pilot program expected to grant licenses to a handful of domestic exchanges, part of a broader effort to restrict offshore trading and tighten control over capital flows.

That combination — legal recognition paired with controlled market access — has triggered a race among local financial institutions and global crypto firms to lock in early positioning. Vietnamese users moved an estimated $200 billion in digital assets in the year through mid-2025, placing the country among the top crypto-adoption markets globally.

Under the partnership, OKX Ventures and HashKey will work with CAEX on infrastructure, security, compliance, and liquidity. The exchange sits within the VPBank ecosystem, drawing on VPBankS for financial backing and governance and LynkiD for core technology and digital identity.

Vietnam was added to the Financial Action Task Force grey list in 2023 for weak anti-money laundering controls, particularly regarding virtual assets. That designation has been a major motivator behind the regulatory push.

The new framework requires crypto firms to obtain licenses, verify user identities, monitor transactions and file reports — measures designed to bring Vietnam closer to global compliance standards.

For Hanoi, the bet is that a regulated crypto market can help repair the country’s financial reputation. For OKX and HashKey, the calculus is simpler: get in early, meet the compliance bar, and grow with the market while the rules are still being written..

The DOJ crypto conflict reached a formal accusation this week when six Democratic senators told Deputy Attorney General Todd Blanche he had a “glaring conflict of interest” after ProPublica reported he held between $158,000 and $470,000 in Bitcoin, Ethereum, and Solana when he issued the memo disbanding the National Cryptocurrency Enforcement Team.

ProPublica’s investigation documents that Blanche’s memo, titled Ending Regulation by Prosecution, disbanded the NCET, halted Biden-era investigations into crypto companies, and directed the DOJ to assist Trump’s crypto working group. The memo benefited the crypto industry broadly, including Blanche’s own portfolio. A DOJ spokesperson told ProPublica the actions were “appropriately flagged, addressed and cleared in advance,” without specifying who cleared them or how. The senators wrote directly to Blanche: “At the very least, you had a glaring conflict of interest and should have recused yourself.”

The NCET was established in 2022 and led the Binance investigation that resulted in a $4.3 billion settlement. Blanche’s memo disbanded it entirely and directed the Market Integrity and Major Frauds Unit to cease cryptocurrency enforcement in order to focus on other priorities including immigration and procurement fraud. Going forward, the DOJ would only pursue crypto cases involving terrorism, narcotics, human trafficking, hacking, and cartel financing. The senators cited a January 2026 Chainalysis report showing illicit crypto activity surged 162 percent the prior year, arguing their predictions about the consequences of the rollback had proven correct.

The Divestiture Problem

When Blanche transferred his crypto holdings to family members rather than selling them outright, ethics experts told ProPublica this approach was at odds with the spirit of the law. The Campaign Legal Center argued the transfers did not eliminate his potential financial interest because his family retained the appreciated assets. ProPublica calculated his Bitcoin holdings rose 34 percent between the date of the memo and the date he divested, a gain that reached approximately $105,000 on that position alone.

What the Senators Demanded and What Comes Next

As crypto.news has reported, the DOJ conflict question has become a live variable inside CLARITY Act negotiations, where Democratic senators are pushing for ethics language barring government officials from profiting from crypto. As crypto.news has noted, the federal regulatory framework is being rebuilt through financial regulators rather than criminal enforcement, a structural shift Blanche’s memo accelerated. The Inspector General complaint filed by the Campaign Legal Center remains open, and the DOJ has not responded publicly to the senators’ demand for documentation.

Shares of stablecoin issuer Circle Internet Group fell sharply Thursday following a Wall Street downgrade and reports tied to a legal probe connected to a recent crypto exploit.

Circle’s stock price closed near session lows in Nasdaq trading, falling 9.9% to $85.10.

The decline adds to a broader slide in the company’s shares, which are down nearly 24% over the past month and about 43% over the past six months, reflecting continued volatility after Circle’s high-profile public debut last year.

However, the latest pullback may also reflect profit-taking after Circle shares surged between February and March, driven largely by growing stablecoin adoption.

Nevertheless, some analysts are urging caution. On Thursday, Compass Point downgraded Circle to “sell” from “neutral” and issued a $77 price target, implying roughly 9% downside from current levels.

Circle has also faced pressure from regulatory uncertainty in the United States. Progress on market structure legislation has stalled, while banking industry groups continue to lobby against yield-bearing stablecoins.

Analysts at Bernstein said the concerns are overstated, noting that Circle’s underlying business remains unaffected and pointing to growing USDC (USDC) adoption and strong reserve income.

Related: Crypto investor sentiment will rise once CLARITY Act is passed: Bessent

Fallout from Drift Protocol exploit continues to weigh on crypto markets

Separately, legal scrutiny tied to the recent exploit of decentralized exchange Drift Protocol has added another layer of uncertainty to the broader crypto market, indirectly weighing on sentiment toward Circle.

According to a notice circulated this week, investors affected by the $280 million Drift exploit are being urged to contact the Oakland, California law firm Gibbs Mura for potential financial recovery. The outreach signals the early stages of a possible class-action investigation tied to losses from the incident.

While Circle is not directly implicated in the exploit, the episode has renewed concerns about counterparty risk and the stability of decentralized finance platforms — an overhang that can spill over into publicly traded crypto-linked equities.

The perpetrator of the Drift exploit moved the stolen assets into USDC, prompting speculation over whether the funds could have been frozen by Circle, though no action was taken.

Related: Crypto hacks fall to $49M in February as attackers shift to phishing scams