Vietnam Takes Major Steps Towards Regulating Digital Currencies

Vietnam has passed a new law recognizing digital currencies and establishing a regulatory framework for them, aimed at enhancing transparency and protecting investors. The law includes:

- *Definition of Digital Currencies*: The law defines digital currencies as digital assets that use encryption or similar technologies to verify transactions and prove ownership.

- *Binary Classification*: The law divides digital assets into two categories:

- *Virtual Assets*: Includes non-financial tokens, loyalty points, or in-app currencies.

- *Cryptographic Digital Currencies*: Includes assets based on encryption technologies and distributed ledger records such as Bitcoin and Ethereum.

- *Compliance with International Standards*: The law aims to comply with international standards for anti-money laundering and counter-terrorism financing, which could help Vietnam exit the Financial Action Task Force's grey list.