Vietnam's Digital Technology Law: a Step Towards Crypto Regulation and FATF Compliance

On June 14, 2025, Vietnam's National Assembly enacted the Law on Digital Technology Industry, set to take effect on January 1, 2026. This legislation aims to regulate the burgeoning cryptocurrency sector, addressing deficiencies that led to Vietnam's gray-listing by the FATF in 2023. The law differentiates between crypto assets, like Bitcoin and Ether, and virtual assets, excluding CBDCs and securities. It mandates identity verification, transaction monitoring, and reporting to combat digital asset fraud. By establishing a comprehensive legal framework, Vietnam seeks to enhance investor confidence and position itself as a digital economy leader in Southeast Asia. The law also includes incentives for startups and foreign investors, such as tax breaks and grants. Furthermore, it facilitates international cooperation on digital asset fraud, aligning with global standards. With these reforms, Vietnam aims to exit the FATF gray list by demonstrating compliance with international regulations, thereby improving its financial reputation and attracting global investment. Read more AI-generated news on: https://app.chaingpt.org/news