Vietnam has taken a major step toward regulating and legitimising its digital economy by passing its first comprehensive law recognising crypto assets. The “Law on Digital Technology Industry”, approved on June 14, 2025, lays the groundwork for a clearer regulatory framework and introduces major changes that impact not just the crypto space but the broader tech industry as well. The law will come into effect from January 1, 2026.
Clear Definitions and Classifications
One of the key features of the new law is that it finally provides legal recognition to crypto assets in Vietnam. The law clearly defines crypto assets as a type of digital asset that uses encryption or similar technologies during their creation, issuance, transfer, and storage.
Importantly, the law distinguishes between two categories of digital assets:
Virtual Assets: These are digital assets used mainly for exchange or investment purposes.
Crypto Assets: These rely on encryption technologies to validate transactions and establish ownership.
This distinction helps avoid confusion with other digital instruments and gives regulators the power to apply specific rules based on the asset type. The legislation also excludes fiat currencies and securities from these categories, ensuring clarity in financial and investment frameworks.
FATF Alignment Could Remove Vietnam from Grey List
Vietnam has been on the Financial Action Task Force (FATF) grey list since 2023, which has placed significant pressure on its financial institutions. Being on the grey list means the country is under increased international scrutiny, especially regarding money laundering and terrorism financing risks.
To address this, the new law aligns Vietnam’s crypto regulations with FATF’s global standards. It includes requirements for:
Clear classification of virtual and crypto assets.
Cybersecurity protocols.
Anti-money laundering (AML) and counter-terrorism financing (CTF) mechanisms.
These changes are seen as vital steps that could help Vietnam get off the grey list and make it easier for local banks and companies to operate internationally.
Roadmap to Implementation
While the law has been approved, it will not take effect until January 1, 2026. This gives both the government and private sector time to prepare for the upcoming regulatory environment.
During this transition period:
Government agencies will develop detailed business conditions, licensing procedures, and security measures.
Businesses in the crypto space will need to adapt to the new legal standards and possibly restructure to comply.
Investors and exchanges operating in or with Vietnam will benefit from increased legal clarity and reduced risk of sudden crackdowns.
The Ministry of Science and Technology, which drafted the legislation, will work closely with other agencies to ensure smooth execution of the law and its supporting regulations.
More Than Just Crypto: A Push for Digital Innovation
While crypto regulation is the headline, the law is part of a broader strategy to develop Vietnam’s digital technology industry. The government aims to foster innovation across several emerging sectors, such as:
Artificial Intelligence (AI)
Semiconductor development
Software production
Digital infrastructure
To support this, the law introduces several incentives, including:
Tax breaks and land-use benefits for tech firms
Funding for AI data centres and digital R&D hubs
Subsidies for training and hiring skilled digital workers
Support for experimental tech projects under controlled conditions
Local governments are also required to support human resource development to meet the growing demands of the digital economy.
A New Era for Vietnam’s Digital Future
Vietnam’s Law on Digital Technology Industry is a landmark piece of legislation that could reshape the country’s position in the global digital and crypto landscape. By clearly defining crypto assets, aligning with international AML standards, and offering strong support for tech innovation, Vietnam is signalling its intent to become a regional digital powerhouse.
The upcoming transition period offers a chance for businesses, investors, and regulators to collaborate and build a transparent, secure, and forward-looking crypto ecosystem. If successful, the move could attract more foreign investment, spark local innovation, and help Vietnam step out of the FATF’s grey zone into a more recognised and respected position in the global digital economy.
