#VietnamCryptoPolicy
**Vietnam Legalizes Crypto with Landmark Digital Technology Law**
Vietnam has officially legalized cryptocurrency under its new *Law on Digital Technology Industry*, passed on June 14, 2025, and set to take effect on January 1, 2026. This groundbreaking legislation categorizes digital assets into two types: **virtual assets** (non-financial tokens like loyalty points) and **crypto assets** (blockchain-based currencies like Bitcoin and Ethereum), explicitly excluding securities and fiat-backed stablecoins .
The law aims to address regulatory ambiguity and align with international standards, particularly the Financial Action Task Force (FATF), which placed Vietnam on its "gray list" in 2023 due to weak anti-money laundering (AML) safeguards. The framework mandates strict AML, cybersecurity, and consumer protection measures to foster a secure crypto ecosystem .
Vietnam’s move reflects its ambition to become a regional tech hub, offering tax breaks and R&D incentives for AI, semiconductors, and blockchain innovation . The country ranks fifth globally in crypto adoption, with $105 billion in inflows (2023–2024) and 17 million citizens holding digital assets .
However, challenges remain, including combating scams like the $400 million MTC exchange fraud. The law’s success hinges on detailed implementation, including licensing for exchanges and taxation policies . By balancing regulation with innovation, Vietnam could emerge as Southeast Asia’s crypto leader.
