Vietnam to Legalize New Crypto Rule: What Will It Be?

2025-06-16

Vietnam has taken a landmark step in regulating its digital economy by legalizing cryptocurrency and virtual assets through the newly passed Law on Digital Technology Industry. Approved by the National Assembly on June 14, 2025, this legislation will come into effect on January 1, 2026, marking the first time the country formally recognizes crypto assets under a clear legal framework.

This move addresses years of regulatory uncertainty and international pressure, especially from the Financial Action Task Force (FATF), which had placed Vietnam on its “gray list” due to inadequate anti-money laundering measures related to virtual assets. The law not only legitimizes crypto but also aims to foster innovation in blockchain, artificial intelligence, and semiconductor industries, positioning Vietnam as a digital technology leader in Southeast Asia.

What Does the New Law Cover?

The Digital Technology Industry Law clearly defines and categorizes digital assets into two main types: virtual assets and crypto assets. Virtual assets refer to digital instruments used for exchange or investment but are not considered financial securities or fiat currencies. Crypto assets are digital tokens that use encryption and blockchain technology to validate ownership and transactions, including popular cryptocurrencies like Bitcoin and Ethereum. Importantly, the law excludes securities, digital fiat currencies, and traditional financial instruments from these definitions, providing a distinct regulatory pathway for crypto assets.

The legislation mandates the government to establish detailed regulations on business licensing, cybersecurity, and anti-money laundering (AML) aligned with FATF standards. This framework aims to ensure that crypto operations are transparent and secure, helping to prevent fraud, money laundering, and terrorism financing risks. The law also sets the stage for government oversight and enforcement to protect investors and maintain market integrity.

Why Did Vietnam Legalize Crypto Now?

Vietnam’s decision to legalize crypto assets stems from several factors. First, the country has one of the highest rates of cryptocurrency adoption globally, with a vibrant but largely unregulated market. This regulatory ambiguity posed risks for investors and hindered the growth of domestic blockchain businesses. Second, international pressure, particularly from FATF, urged Vietnam to strengthen its AML and counter-terrorism financing frameworks to avoid sanctions and improve its global financial standing.

Moreover, Vietnam aims to accelerate its digital transformation and become a competitive player in emerging technologies. The new law is part of a broader strategy to support innovation in AI, blockchain, and semiconductor sectors by offering incentives such as tax breaks, research funding, and easier land access for tech companies. This comprehensive approach reflects Vietnam’s ambition to build a robust digital economy that attracts foreign investment and nurtures local talent.

What Are the Implications for the Crypto Market and Tech Industry?

The legalization of crypto assets under a regulated framework is expected to bring several benefits to Vietnam’s economy. It will provide legal certainty for businesses and investors, encouraging more participation in the crypto market and fostering innovation in blockchain applications. Clear rules on licensing and compliance will help weed out fraudulent schemes and scams, enhancing consumer protection and market trust.

Additionally, the law’s support for digital technologies beyond crypto—such as AI and semiconductors—signals a holistic vision to develop Vietnam’s tech ecosystem. By facilitating research, manufacturing, and education in these fields, the government hopes to create high-skilled jobs and position the country as a regional tech hub. However, challenges remain, including ensuring effective enforcement of AML regulations and cybersecurity standards to prevent misuse of digital assets.

What to Expect Next?

Starting January 1, 2026, the Vietnamese government will begin implementing the new regulations, including setting up licensing systems for crypto businesses and defining operational standards. Authorities will also intensify efforts to combat crypto-related fraud and enhance cybersecurity measures. Educational initiatives will be launched to improve digital literacy and prepare the workforce for the evolving tech landscape.

Investors and companies interested in Vietnam’s crypto market should monitor forthcoming detailed guidelines and compliance requirements. While the law opens new opportunities, it also demands adherence to strict regulatory standards. Overall, this legislation marks a significant milestone in Vietnam’s digital journey, balancing innovation with security and governance.

Conclusion

Vietnam’s legalization of crypto assets through the Digital Technology Industry Law is a historic development that clarifies the legal status of digital assets and sets a regulatory foundation for the country’s digital economy. By distinguishing virtual and crypto assets and excluding traditional financial instruments, the law creates a clear framework aligned with international standards.

This move addresses past regulatory gaps, responds to global pressures, and supports Vietnam’s ambitions to become a leader in digital technologies. As the law takes effect in 2026, it promises to boost investor confidence, foster innovation, and strengthen the overall tech ecosystem, while also posing new challenges in enforcement and market oversight. Vietnam’s approach could serve as a model for other emerging markets navigating the complex world of cryptocurrency regulation.

FAQ

Q1: When will Vietnam’s new crypto law take effect?
The law will be effective starting January 1, 2026.

Q2: What types of digital assets does the law recognize?
It recognizes two categories: virtual assets (non-financial digital tools) and crypto assets (encrypted digital tokens using blockchain technology).

Q3: Are cryptocurrencies like Bitcoin and Ethereum legal in Vietnam now?
Yes, cryptocurrencies classified as crypto assets are legally recognized under the new law.

Q4: Does the law regulate digital fiat currencies or securities?
No, digital fiat currencies and securities are explicitly excluded from the law’s definitions of crypto and virtual assets.

Q5: What are the government’s goals with this law?
The law aims to provide legal clarity, protect consumers, prevent financial crimes, and promote innovation in blockchain, AI, and semiconductor industries.

Q6: How will the law impact crypto businesses?
Businesses will need to obtain licenses and comply with AML and cybersecurity regulations, which should enhance market transparency and security.

Q7: Why did Vietnam legalize crypto now?
Due to high crypto adoption, regulatory ambiguity, FATF pressure, and ambitions to lead in digital technology innovation.

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