Historic Legislation: Vietnam becomes world’s first country to pass dedicated digital technology industry law, ending eight-year regulatory vacuum.
Market Awakening: Over $100 billion in crypto assets held by 17 million Vietnamese citizens finally gain legal recognition and protection.
Regional Competition: Vietnam races against Singapore and Thailand to establish Southeast Asia’s leading crypto financial hub by 2030.
Vietnam passes groundbreaking Digital Technology Industry Act, becoming first nation to create comprehensive crypto regulation. The $100B market moves from gray zone to legal framework by 2026.
une 14, 2025 – Vietnam’s National Assembly passed the Digital Technology Industry Act with overwhelming support, making Vietnam the world’s first country to create dedicated legislation for the digital technology industry. This historic law takes effect on January 1, 2026, marking a pivotal moment for Southeast Asia’s cryptocurrency landscape.
The legislation officially ends an eight-year regulatory vacuum while bringing much-needed clarity to a market serving 17 million cryptocurrency holders across the nation.
DUAL DRIVERS BEHIND THE LEGISLATION
Economic Ambition Meets Fraud Prevention
Vietnamese citizens consistently rank among the world’s top three cryptocurrency asset holders, with their combined holdings exceeding $100 billion in market value. However, legal uncertainty has kept this massive market in a regulatory gray zone for years.
The 2024 “Matrix Chain” scandal devastated investors by wiping out $400 million, while the early 2025 “BitMiner” fake mining operation struck again with devastating losses. These incidents finally convinced the government that only transparent regulation can effectively end the ongoing chaos.
Economic transformation needs drive even deeper motivations. Vietnam plans to become Southeast Asia’s premier financial center by 2030, with cryptocurrency regulation serving as a crucial breakthrough strategy. The Finance Ministry has calculated impressive potential returns: a mere 0.1% tax on cryptocurrency transactions could generate $800 million in annual revenue.
Additionally, the law includes generous 50% subsidies for technology research and development, specifically designed to attract high-end industries such as chip design and AI data centers.
NEW LAW’S CORE: VIETNAM’S BALANCED INNOVATION APPROACH
The legislation creatively categorizes digital assets into two distinct types: “virtual assets” (including gaming items) and “crypto assets” (covering Bitcoin and similar currencies). The law explicitly excludes securities and digital fiat currencies, thereby creating clear and enforceable regulatory boundaries.
Key Regulatory Mechanisms
Licensing System: Domestic exchanges must meet stringent cybersecurity and anti-money laundering requirements, while foreign platforms like Bybit must successfully pass “regulatory sandbox” testing before being permitted to operate.
Anonymous Transaction Ban: The law mandates comprehensive “travel rules” implementation, requiring both transaction parties to share complete identity information.
Payment Function Restrictions: Cryptocurrency assets cannot replace the Vietnamese dong in circulation, effectively protecting the sovereign currency system from potential disruption.
This regulatory design clearly differentiates itself from El Salvador’s radical “Bitcoin legalization” experiment, instead following Singapore’s proven compliance-focused innovation pathway. Deputy Justice Minister To Tran Hoa stated emphatically: “Legalization doesn’t encourage reckless speculation—it creates carefully controlled innovation channels.”
MARKET RESONANCE: CAPITAL RETURN AND LOCAL AWAKENING
Within just 48 hours of the law’s passage, domestic broker SSI Digital announced the establishment of a substantial $200 million blockchain investment fund. The company simultaneously reached strategic cooperation agreements with major international platforms including Binance and OKX.
“Many talented ‘Made in Vietnam’ blockchain projects previously had to operate overseas in hiding,” explained SSI Digital General Manager Mai Huy Tuan during a major investment forum. “Now they can finally return home and operate openly with full legal protection.”
The activation of previously dormant private assets deserves particular attention. Sky Mavis, the innovative developer behind the gaming sensation Axie Infinity, has announced concrete plans to relocate its headquarters from Singapore back to Ho Chi Minh City. Meanwhile, “hidden whales” like prominent Hanoi businessman Tran Van Hung, who reportedly holds 2,000 Bitcoin worth approximately $600 million, can finally manage their substantial assets publicly and legally.
UNFINISHED BATTLES: THREE MAJOR IMPLEMENTATION CHALLENGES
Despite receiving widespread international acclaim, the implementation road ahead remains fraught with significant challenges:
Upgraded Fraud Techniques
Sophisticated criminal groups are now actively exploiting advanced cross-chain bridges and privacy-focused coins to systematically evade new regulations. A recent major truck mining electricity theft case discovered in Buryat Republic clearly demonstrates how gray market industries have successfully shifted to increasingly concealed operational methods.
Tax Collection Complexities
The Finance Ministry has not yet released detailed procedural rules for effectively tracking complex on-chain transactions. Furthermore, how to properly tax decentralized finance (DeFi) protocols remains completely unclear and unaddressed.
Regional Competitive Pressure
Singapore has already successfully issued 19 comprehensive cryptocurrency licenses, while Thailand has proactively approved Bitcoin spot ETFs. Vietnam’s ambitious Ho Chi Minh City International Financial Center development plan requires significant acceleration to successfully capture emerging market opportunities.
REGULATORY FRAMEWORK DETAILS
The comprehensive new law establishes sophisticated oversight mechanisms throughout the industry. Cryptocurrency service providers must formally register with the State Bank of Vietnam while maintaining substantial minimum capital requirements and implementing robust customer protection measures.
Foreign companies face additional stringent requirements, including establishing permanent local offices and appointing qualified Vietnamese compliance officers. This ensures proper regulatory oversight and enables rapid response to emerging regulatory concerns.
The law also creates designated innovation zones specifically for fintech experimentation. These carefully managed “regulatory sandboxes” allow innovative companies to test new services under temporarily relaxed regulatory constraints. Successful pilot programs can then scale nationwide with complete regulatory approval.
INDUSTRY TRANSFORMATION EXPECTATIONS
Market participants widely anticipate significant transformative changes across multiple industry sectors. Traditional banks are actively exploring comprehensive cryptocurrency custody services, while insurance companies are developing specialized digital asset protection products. Even established real estate firms are seriously considering blockchain-based payment options.
The legislation specifically encourages blockchain applications that extend far beyond simple trading activities. Supply chain transparency, digital identity management, and government record keeping receive special regulatory support. These diverse use cases align perfectly with Vietnam’s broader national digitalization objectives.
INTERNATIONAL IMPLICATIONS
Vietnam’s innovative regulatory approach has attracted intense global attention from both international regulators and major industry players. The legislation successfully balances innovation promotion with essential consumer protection—creating a potentially replicable model that other emerging markets may choose to adopt.
Regional financial centers are watching nervously as Vietnam strategically positions itself as an increasingly crypto-friendly destination. While Hong Kong and Singapore have historically dominated Asian cryptocurrency markets, Vietnam’s significant cost advantages and exceptionally large user base present serious competitive challenges.
CONCLUSION: AN EXPERIMENT DEFINING SOUTHEAST ASIA’S FINANCIAL FUTURE
When Vietnam formally writes cryptocurrency assets into comprehensive legal text, the significance extends far beyond mere regulation itself. This represents emerging markets’ bold declaration of digital technology sovereignty. Ultimate success or failure will definitively test a crucial proposition: Can developing nations successfully transform “traffic dividends” from chaotic wild-west eras into genuinely sustainable innovation momentum?
The National Blockchain Association warns appropriately: “The trillion-dollar market has finally awakened, but only by carefully balancing innovation with prudent risk management can we avoid repeating devastating fraud disasters.”
This groundbreaking experiment beginning along the historic Mekong River will ultimately reshape the complex power dynamics of Southeast Asian and global cryptocurrency industries. Vietnam has deliberately chosen to lead rather than passively follow in comprehensive digital asset regulation.
The coming critical months will definitively determine whether this bold legislative initiative creates the intended innovation ecosystem or accidentally unleashes serious unintended consequences. Regardless of the outcome, Vietnam has permanently and irreversibly altered the regional regulatory landscape.
〈Vietnam Breaks Through Digital Asset Regulation: From Gray Zone to Legislative Testing Ground〉這篇文章最早發佈於《CoinRank》。
