On October 1, 2025, as reported by Binance, the exchange submitted a formal request to the Vietnam Ministry of Finance for review of new tax reviews on crypto transactions, emphasizing that taxes calculated on the total amount of the business could immediately pose a risk to the liquidity and stability of the local market.
International analysis and guidelines for taxation of digital assets provide a useful framework for assessing these impacts.
Market analysts and some market making operators contacted us in the report in this article and reported observable effects on spreads and order book depth when taxes based on total amounts were introduced.
From an operational perspective, a 0.1% tax is 10 times the typical margin of 0.01% per single trade, which makes many market production strategies economically unsustainable when applied without compensation mechanisms.
Binance: Value Tax Can Expel Market Makers
Exchange will be disputed for taxes applicable to Total value of trading. In the current model, for market production – where there is a margin per single trade around 0.01% – Tax of 0.1% Disprovement goes beyond the actual profits of the business to become a potential market maker that is uneconomical and could drive its activities from the market. That said, tax architectures directly affect the sustainability of these strategies.
In this regard, Binance reports that international experience shows that similar taxation can significantly reduce trading activity. In Indonesia, for example, crypto-related tax revenues would have declined by about. 63% After introducing similar measures (validated Binance data).
Policy proposal: Taxing net profit
Or Binance suggests taxing Net profit – Defined as the difference between the selling price and the purchase price. Fee – Instead of the total amount of transactions. With this methodology, 20% Rates apply to net income.
If you cannot accurately determine your net profit, Binance will fall back Mechanism: Apply a 0.1% Taxes on the selling price (as confirmed by Binance).
Market impact: wider spreads and rising costs
If market makers cut their business due to excessive levies, The depth of the book Ask the bid, the wide spread thins between the increase, Volatility.
For retail investors, this means higher execution costs, more frequent slips and less reliable prices, especially in the stressful market stage. In this regard, transactions become more burdensome.
- Typical margin per trade: approx. 0.01%.
- Taxes contested: 0.1% About transaction values.
- Proposed alternatives: 20% There is a fallback on net profit 0.1% Applies to the selling price.
International Comparison: How Other Countries Tax
Observing experiences in other countries reveals different approaches that provide a point of reflection. For example, in Indonesia, 0.1% Taxation amount and a 0.1% Transaction VAT has been introduced. According to some estimates, 63% Decrease in crypto tax revenue (data from verified data).
However, in Singapore, capital gains from holding cryptocurrency are not taxed, but professional activities are treated as income, supporting the appeal of capital and qualified operators.
In Thailand, after the various revisions, profit margins – first 15% – Changed 7% VAT has been deleted for certified exchanges. This is a choice aimed at supporting domestic liquidity. The results are not uniform, but the comparison remains useful.
|Indonesia | About 0.1% Income Tax + 0.1% VAT on Transactions | Crypto Tax Revenue 63% After installation (data to be verified) |
|Singapore|No tax Capital Gain For retention; professional activities are taxed as income | An approach focused on capital and attracting qualified operators |
|Thailand|Profit ratio (approximately 15%); 7% VAT Removed for approved exchanges | Reconsidering tax systems and support Domestic liquidity |
|Vietnam|Value tax under investigation. Alternative suggestions: 20% About fallback net profit 0.1% | Balance quickly Revenue and ecosystem development |
Vietnam: What to monitor to assess impacts
To accurately assess the effectiveness of tax reform, it is essential to monitor several key indicators. Average daily volume of certified exchanges (for spot and derivative operations), number of active market makers, market share, fluctuations in spreads for major cryptocurrency pairs (e.g. BTC/VND, USDT/VND) Operating profit of various strategies.
At present, such data is not systematically available. It's useful to have an official series or a collection of independent audits. That said, you need a shared information framework.
Local reactions and the next institutional steps
According to some sources, local institutional investors including the well-known fund Dragon Capital (to verify), and scholars like RMIT University have a positive view of taxes. Profit In the early stages of the market, it is considered functional to attract liquidity.
On that side, Vietnam's Ministry of Finance has not yet released it Public response Request for October 1, 2025. Technical discussions need to clarify the impact on revenue and market stability. Certainly, the discussion remains open.
Collateral risk: liquidity transition overseas
Tax based on Total value Operations can lead operators to move to foreign structures or commercial (OTC) markets, resulting in reduced liquidity fragmentation and risk management.
Conversely, taxes on profits, if well defined and applicable, can help maintain depth and competitiveness of the domestic market and maintain track and field supervision. It should be noted that tax boundary choices affect flow trajectories.
Quick FAQ
What is the tax rate proposed by Binance?
Binance proposes 20% On rate Net profit,This is the difference between the selling price and the purchase price, the net cost, and Fee.
What happens if we can't determine net profit?
In such cases, fall back The mechanism works. This includes the application of a 0.1% Tax on the selling price of a transaction.
Who is more exposed to the value tax?
This measure is particularly affecting Low margin Collection on total value can easily exceed actual profits, which is a typical high-frequency strategy for market manufacturers.
Conclusion
The request by Binance on October 1, 2025 rekindles debate over how to tax the crypto sector: value Restrict it for a transaction Net profit.
The decision will affect Fluidityinvestors' costs, and Vietnam's ability to attract qualified operators. Only assessments based on transparent data and international comparisons can help you find the balance between Tax revenue And market health.
