Vietnam has officially taken a major step toward legitimizing and regulating its digital economy with the passage of the Law on Digital Technology Industry—the country’s first comprehensive legal framework that recognizes crypto assets.
Approved by the National Assembly on June 14, the law introduces a two-tier classification system that distinguishes between virtual assets and crypto assets. Crypto assets are defined as digital assets that use encryption or similar technologies for creation, issuance, storage, or transfer. Virtual assets are recognized as digital assets used for exchange or investment purposes. Notably, the law excludes securities and fiat currencies from the crypto asset definition.
The legislation aligns Vietnam with global anti-money laundering (AML) standards and could pave the way for the country's removal from the Financial Action Task Force’s (FATF) gray list, where it has remained since 2023—posing challenges for local financial institutions and cross-border transactions.
Set to take effect on January 1, 2026, the law provides a transition period for businesses and regulators to build compliance frameworks. The government will retain authority over detailed classifications, licensing conditions, and asset management protocols. Regulatory agencies will also be required to implement cybersecurity measures to prevent money laundering, terrorism financing, and the spread of weapons.
Drafted by the Ministry of Science and Technology, the legislation is part of a broader strategy to boost innovation in areas such as semiconductors, artificial intelligence, and digital infrastructure.
Beyond crypto regulation, the law introduces a range of incentives for digital technology enterprises. It promotes controlled experimentation with new technologies, encourages shared digital infrastructure, and mandates local governments to develop human resources—particularly in high-priority sectors like AI, software production, and chip manufacturing.
To support this vision, the government will offer subsidies for workforce training and hiring of high-skilled professionals. Additionally, AI data centers and software production facilities will receive investment, tax, and land-use incentives, gaining official recognition as strategic sectors under Vietnamese law.
📜 What’s Changing?
1. Official Legal Recognition of Digital Assets
The draft law explicitly defines “digital assets”, differentiating between security tokens, payment tokens, and utility tokens .
For the first time, digital assets will be recognized as a formal product category, aligning with international definitions .
2. Regulated Trading Environment
The Ministry of Finance, alongside other agencies, is mandated to craft a legal framework for digital asset providers—including exchanges—with finalization targeted by May 2025 .
A regulatory sandbox under a proposed financial center in HCM City & Đà Nẵng aims to launch by July 1, 2026, allowing pilot trading under oversight .
3. Investor Protections & Risk Mitigation
The law incorporates KYC, personal data protection, and dispute resolution mechanisms to safeguard users .
Experts anticipate the regulation will curb fraud, money laundering, and other illicit uses .
Tax revenue providers may also tap into crypto-related taxes and trading fees (e.g., personal income tax at ~0.1%) .
4. Digital Assets in Financing & Innovation
Generous incentives are under discussion for tech projects (investment ≥ VND 2 trillion / ~US $80 million) and R&D centers .
With over 17 million Vietnamese crypto owners, the legislation is expected to channel underground financial flows into regulated markets .
Vietnam currently ranks in the top 5–7 globally by crypto adoption .
⚙️ Why It Matters
Clarity & consumer trust: Formal definitions and licensing frameworks help legitimize crypto and shield investors from scams.
Economic benefits: Official channels may boost foreign direct investment in blockchain and retention of local digital asset activity.
Global positioning: Vietnam aims to become a regional blockchain hub by 2030, backed by its national blockchain strategy .
⏳ Timeline at a Glance
Date Milestone
May 2025 Completion of legal framework draft by Ministry of Finance
Q2 2025 Expected passage of the Digital Technology Industry Law
July 1, 2026 Launch of sandbox trading in financial centers
✅ Final Take
Vietnam is landing squarely in the legal fold with crypto—not by legitimizing it as currency, but by embracing it as a regulated digital asset class. The new law’s structured definitions, regulatory sandboxes, and safeguards signal a major pivot from unofficial, high-risk crypto trading toward a formal, investor-protected digital asset economy. It’s a pivotal moment, poised to reshape Vietnam’s tech future and increase confidence among both domestic and international participants.