The recently passed 'Digital Technology Industry Law' in Vietnam will include cryptocurrency within the legal framework (effective in 2026), significantly impacting the crypto space, primarily reflected in the following three aspects:

1️⃣ Policy Breakthrough and Compliance

Vietnam has for the first time clearly distinguished between virtual assets and encrypted assets, requiring trading platforms to comply with anti-money laundering (AML) and know your customer (KYC) standards, promoting alignment with international regulations. This move could help Vietnam exit the FATF's 'grey list,' reducing barriers to cross-border transactions.

2️⃣ Market Liquidity and Institutional Participation

Clarified regulations will attract more institutional funds into the Vietnamese market, while tax policies (such as a 0.1% transaction tax) are expected to generate over $800 million in annual revenue for the government, although this may temporarily suppress high-frequency trading. The penetration rate of Vietnamese users has reached the global forefront (projected at 20.69% by 2025), and the new framework may further boost trading volume and liquidity, benefiting BTC and mainstream altcoins.

3️⃣ Regional Position and Challenges

Vietnam is expected to become a new hub for cryptocurrency in Southeast Asia, but insufficient infrastructure, strict foreign exchange controls, and high compliance costs may limit its potential to replace Singapore.

Future Outlook: After the policy is implemented, Vietnam may become a growth pole in the Asian crypto market, driving an increase in global adoption rates, but it needs to balance innovation incentives with regulatory costs.