Vietnam Legalizes Crypto: Passes New Legislation To Regulate Digital Assets

Things are looking up in the Vietnamese crypto landscape! According to local sources, the country passed its Law on Digital Technology Industry on 14 June 2025. A first of its kind in the country, the legislation aims to properly regulate Vietnam’s newly legitimised digital economy.

Local sources have quoted, “The law defines crypto assets as digital assets that use encryption or similar digital technologies for validation during creation, issuance, storage, or transfer.”

Interestingly, the legislation demarcates virtual and crypto assets in addition to taking steps to sync up Vietnam’s anti-money laundering (AML) protocols with global standards.

Industry experts foresee this as a proactive step taken by the country in a bid to remove itself from the Financial Action Task Force’s (FATF) grey list. Vietnam has been on FATF’s grey list since 2023, facing compliance issues as local businesses endure increased scrutiny on their cross-border transactions.

Notably, the FATF has explicitly urged the Vietnamese authorities to implement clear regulations for virtual assets to strengthen the country’s AML compliance standards.

The Vietnamese government will implement the legislation on 1 January 2026 and expects it to establish a foundation for nationwide digital innovation.

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Understanding the New Vietnamese Crypto Law

Vietnam’s Law on Digital Technology Industry has classified digital assets into virtual and crypto assets, aiming to help foster innovation in the country across industries such as artificial intelligence and semiconductors.

It also sets clear guidelines to regulate the crypto sector. Notably, while encryption will protect both virtual and crypto assets, neither asset class includes digital fiat currencies or any other financial instrument.

The legislation will consider virtual assets as digital assets, primarily to be used for exchange or investment purposes, while considering cryptocurrencies an instrument that uses encryption to validate ownership and transactions.

Local businesses and regulators may rest easy since the late implementation of this legislation will provide the transition period needed to get their affairs in order.

Vietnam’s new crypto law aims to bring the country on par with other global digital hubs and has introduced several incentives, including tax breaks, land-use benefits and R&D support, particularly for businesses involved in developing core technologies such as chip design and AI data centres, to accelerate achieving this initiative.

Le Quang Huy, the Chairman of the National Assembly’s Committee on Science, Technology and Environment, outlined, “The newly passed law clearly outlines Vietnam’s strategic goal to develop a comprehensive semiconductor industry and gradually become an essential link in the global supply chain.”

Additionally, regional governments have been asked to foster workforce development through subsidies and training, while education policies have been rethought to incorporate digital technology skills into their national curriculum.

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