#VietnamCryptoPolicy

Vietnam's National Assembly has passed the Law on Digital Technology Industry, a landmark legislation that brings cryptocurrency under the legal umbrella, effective January 1, 2026. This move marks a significant shift from a gray zone to a legally structured ecosystem for Vietnam's crypto industry.

*Key Provisions of the Law:*

- *Digital Asset Classification*: The law categorizes digital assets into two types:

- *Virtual Assets*: Used for exchange or investment, such as loyalty points or gaming-related digital goods.

- *Crypto Assets*: Encrypted digital assets supporting validation and ownership, like Bitcoin and Ethereum.

- *Exclusions*: Both categories explicitly exclude securities, fiat-representative tokens, and traditional financial tools.

- *Regulatory Framework*: The law empowers the government to develop detailed implementation guidelines, including licensing requirements, compliance protocols, and consumer protection measures.

- *Anti-Money Laundering (AML) and Cybersecurity*: The legislation mandates strict oversight mechanisms to meet global standards and address Vietnam's placement on the Financial Action Task Force (FATF) gray list since 2023 ¹ ².

*Implications and Watchpoints:*

- *Improved Global Financial Integration*: Aligning with FATF benchmarks could enhance Vietnam's global financial integration.

- *Regional Leadership*: Vietnam is positioning itself as a regional leader in responsible crypto innovation, potentially shaping Southeast Asian digital-asset norms.

- *User Protection and Tax Revenue*: Regulators aim to unlock user protection, tax revenue, and institutional interest while aligning Vietnam with global norms.

- *Institutional Investment*: The legalization is expected to significantly boost market confidence in Vietnam's digital asset sector and attract institutional investors ¹.

*Crypto Adoption in Vietnam:*

- *High Adoption Rates*: Vietnam ranks among the top 5 globally in crypto adoption, with use cases ranging from remittance and financial inclusion to speculative investment and digital rewards