Author | FinTax
Introduction
For a long time, Vietnam's legal characterization of cryptocurrencies has been vague, and tax policies have also fallen into a 'grey zone,' leaving market participants shrouded in uncertainty. However, this situation underwent a significant change on June 14, 2025, when the National Assembly of Vietnam passed the (Digital Technology Industry Law), which for the first time incorporated crypto assets into the national legal framework and implemented clear classification regulation, formally granting them legal status, marking a milestone event in the country's cryptocurrency asset regulatory process.
The new law divides digital assets into two categories: 'virtual assets' and 'crypto assets,' excluding securities, digital fiat currencies, and other financial instruments, and grants the government the authority to develop implementing regulations, while emphasizing the reinforcement of cybersecurity, anti-money laundering, and counter-terrorism financing requirements. This law is set to come into effect on January 1, 2026, with the core objective of improving the relevant legal system, aligning with international regulatory standards, and assisting Vietnam in expeditiously exiting the FATF grey list.
This article attempts to analyze the restructuring effect of this legislative breakthrough on Vietnam's digital economy landscape and examine the latest dynamics and future trends of its tax system. By sorting through the policy evolution of the Vietnamese government over the past few years from cautious observation to actively building a regulatory framework, along with comparative analysis of practices in the field of cryptocurrency taxation and regulation in Southeast Asia and other representative countries globally. Furthermore, it will also look ahead to Vietnam's strategies for balancing risk control and innovation development, predicting specific policies that may be introduced in the coming years and the potential impacts of these policies on Vietnam as an emerging digital economy.
1 Vietnam clarifies the legal status of crypto assets.
Before the promulgation of the (Digital Technology Industry Law), Vietnam's legal characterization of cryptocurrencies remained in a vague and evolving state. Initially, the Vietnamese government's attitude towards cryptocurrencies was mainly reflected in strict restrictions on their use as a means of payment and risk warnings. For example, in the circular No. 5747/NHNN-PC issued by the State Bank of Vietnam (SBV) in July 2017, it was explicitly stated that cryptocurrencies such as Bitcoin and Litecoin are not recognized as legal tender or means of payment in Vietnam and their issuance, supply, and use are explicitly prohibited, with violators facing administrative or criminal penalties. Subsequently, in April 2018, the Prime Minister issued Directive No. 10/CT-TTg, requiring relevant departments such as the General Statistics Office, the Ministry of Finance, and the Ministry of Public Security to strengthen management of cryptocurrency-related activities to enhance control over relevant transactions and prevent potential harm.
Although the Ministry of Finance announced in April 2016 in Circular No. 4356/BTC-TCT that it would not prohibit cryptocurrency trading and characterized it as 'property' and 'liquid goods,' the lack of clear legislative support has left this directive in an ambiguous position in practice, leading to complexity in compliance and law enforcement related to crypto trading. Furthermore, according to Article 105.1 of Vietnam's 2015 Civil Code defining property, which includes various items, currencies, monetary instruments, and property rights, digital assets such as cryptocurrencies clearly do not fall under any of the above categories, thus they are not considered physical assets under current Vietnamese law. This lack of classification has created significant legal gaps, directly affecting the handling and regulatory approach of these assets within the legal framework.
However, this ambiguous state underwent a fundamental change on June 14, 2025. The National Assembly of Vietnam passed the landmark (Digital Technology Industry Law), which will officially take effect on January 1, 2026. This law for the first time clearly defines 'digital assets' in the Vietnamese legal system and further subdivides them into 'crypto assets' (secured by encryption and blockchain technology) and 'virtual assets' (primarily for trading and investment, excluding securities, stablecoins, and central bank digital currencies). This legislative breakthrough ends years of uncertainty regarding the legal status of crypto assets in Vietnam, formally recognizing crypto assets as legal property under civil law, thus providing a solid legal foundation for individuals and organizations to establish and exercise property rights legally.
This strategic shift from 'non-recognition' to 'legalization' is not accidental, as the Vietnamese government has recognized the immense potential inherent in the crypto economy. Despite regulatory obstacles, Vietnam has one of the highest cryptocurrency ownership rates globally, ranking fifth in the world, with approximately 20.95% of the population holding crypto assets, and annual inflows exceeding $100 billion. At the same time, Vietnam also faces pressures to respond to international anti-money laundering (AML) and counter-terrorism financing (CTF) demands, being placed on the grey list by the Financial Action Task Force (FATF), which requires it to enhance virtual asset management. Therefore, legalization is a necessary prerequisite for attracting investment, promoting digital economic development, and effectively regulating this emerging industry. This indicates that the Vietnamese government has shifted from mere risk prevention to actively embracing the opportunities presented by the digital economy, attempting to guide and regulate this emerging industry through the establishment of a sound legal framework rather than merely suppressing it.
2 Vietnam's shift in cryptocurrency regulatory system.
The official shift in Vietnam's characterization of cryptocurrencies reflects a significant change in its regulatory system. In the past, Vietnam's cryptocurrency regulatory system faced issues of incompleteness and passive response, often employing a one-size-fits-all regulatory approach; however, with the rise of the global cryptocurrency wave and changes in Vietnam's leadership, its cryptocurrency regulatory framework is currently rapidly improving. Not only has a preliminary division of regulatory labor been formed, but there are also intensive discussions and implementations of multiple regulatory pilot projects underway, aiming to effectively address challenges such as anti-money laundering (AML) and counter-terrorism financing (CFT) while embracing new technologies.
2.1 Evolution of the regulatory system framework.
Vietnam's cryptocurrency regulatory framework has undergone significant evolution from non-existence to existence, from passive response to active guidance.
From 2016 to 2022, Vietnam's cryptocurrency regulatory system has evolved from non-existence to existence, from a one-size-fits-all approach to exploration and research.
In April 2016, the Ministry of Finance announced that it would not prohibit cryptocurrency trading, but its characterization was vague. Then, in July 2017, the State Bank of Vietnam (SBV) explicitly prohibited cryptocurrencies such as Bitcoin as a means of payment and emphasized their illegality. In April 2018, the Prime Minister issued a directive requiring strengthened management of cryptocurrency-related activities, while the SBV also instructed financial institutions to enhance measures related to crypto trading, reflecting the government's early cautious and risk-averse stance.
In May 2020, the Prime Minister instructed the SBV to initiate pilot projects exploring the use of blockchain in cryptocurrencies and required it to study and assess the pros and cons of cryptocurrency. In March 2022, the Vietnam Blockchain Association (VBA) was established as Vietnam's first legal entity focused on crypto assets, tasked with creating and nurturing a framework for cryptocurrency development. In the same year, Vietnam passed anti-money laundering (AML) legislation, which came into effect in 2023, requiring payment service providers to implement Know Your Customer (KYC) measures, marking an important step in its international compliance efforts. In October 2022, the Prime Minister again called for regulation of cryptocurrencies, showing the government's urgent need for standardization in this field.
After 2023, especially after changes in Vietnam's leadership in 2024, the regulatory attitude towards cryptocurrencies has gradually softened.
In February 2024, the Prime Minister issued Decision No. 194/QD-TTg, instructing the Ministry of Finance to draft a legal framework for virtual assets, clarifying the government's legislative determination. In October of the same year, the Prime Minister signed Decision No. 1236/QD-TTg, promulgating the (2025 Vietnam National Strategy for Blockchain Technology Development and Application) and looking forward to 2030, aiming to make Vietnam a regional leader in blockchain innovation. This strategy clearly positions blockchain as a core pillar of digital transformation and emphasizes 'Vietnam-made' blockchain platforms, indicating that the government views blockchain and digital assets as key drivers for the country's digital economic development.
In June 2025, the (Digital Technology Industry Law) will be enacted, which establishes a tolerant and prudent regulatory framework from multiple aspects, including clearly defining digital asset classifications (crypto assets, virtual assets), mandating the implementation of anti-money laundering (AML) and counter-terrorism financing (CTF) measures, introducing a licensing system, and promoting incentives for emerging technologies such as artificial intelligence, semiconductors, and advanced computing, thus promoting broader digital economic development.
The maturity of the regulatory framework from 'passive response' to 'active guidance' is a key feature of Vietnam's policy evolution in the digital asset sector. In the early days, Vietnam's regulation of cryptocurrencies primarily involved 'prohibiting their use as a means of payment' and 'risk warnings,' which was a passive and preventive stance. However, in the past two years, the focus of regulation has clearly shifted towards actively constructing a framework by incorporating crypto assets into the national digital economy development strategy, from the Prime Minister's instruction to research and establish a blockchain association to the promulgation of the (Digital Technology Industry Law) and the National Blockchain Strategy. This marks Vietnam's entry into a more mature and pragmatic stage in digital asset regulation, where the goal is no longer solely to control risks, but to unleash innovation potential through a clear and predictable legal environment, attract domestic and foreign investment, and enhance its position in the global digital economy.
2.2 Overview of Vietnam's existing regulatory framework and division of labor.
Vietnam's current cryptocurrency regulatory framework is primarily divided among various ministries, forming a pattern of 'loose regulation.' Multiple key agencies, including the State Bank of Vietnam (SBV), the Ministry of Finance (MoF), the Ministry of Public Security, and the Vietnam Blockchain Association (VBA), collaborate to jointly construct and improve the regulatory framework, with specific divisions of labor outlined in the table below.
2.3 Regulatory sandbox pilots and risk compliance construction in the new normal.
To explore innovative applications of digital assets under controllable risks, the Vietnamese government actively introduces regulatory sandbox mechanisms and pilot projects.
The Vietnamese government is discussing the establishment of regional and international financial centers, one key aspect being the introduction of controlled testing policies (sandboxes) for financial technologies (Fintech), especially for business models involving crypto assets and cryptocurrencies. This sandbox mechanism allows for small-scale testing of new financial technologies and business models in a controlled environment, thus assessing their potential risks and benefits before full-scale promotion. For example, Da Nang has been approved to pilot a special mechanism, including a project for international tourists to make payments using stablecoins (USDT), seen as an important attempt to explore the application of digital payments in the tourism industry. These pilot projects aim to accumulate practical experience to provide data and rationale for a more comprehensive regulatory framework in the future.
Moreover, Vietnam is actively exploring the development of a central bank digital currency (CBDC) — the digital dong. The Prime Minister has repeatedly called for the SBV to study the pros and cons of digital currencies and initiate pilot cryptocurrency projects based on blockchain technology. Although the issuance of the digital dong is still in the evaluation stage, its potential legal status and complementary role to the traditional financial system are important components of Vietnam's digital economy development.
Of course, while promoting innovation in the regulatory framework, anti-money laundering (AML) and counter-terrorism financing (CTF) compliance remain core concerns for Vietnamese authorities, especially after being placed on the grey list by the Financial Action Task Force (FATF).
Vietnam is currently still on the Financial Action Task Force (FATF) 'Increased Monitoring List' (grey list), primarily due to its deficiencies in crypto-related anti-money laundering practices. Being on the grey list indicates that the country has strategic shortcomings in combating money laundering and terrorist financing, which may affect its international financial reputation and ability to attract foreign investment. To be removed from the grey list, Vietnam must formulate policies for managing virtual assets and strengthen relevant law enforcement.
The passage of the (Digital Technology Industry Law) is a significant measure for Vietnam in response to FATF pressures. This law explicitly requires all digital asset activities to strictly implement anti-money laundering (AML) and counter-terrorism financing (CTF) measures to enhance security and transparency. This means that future cryptocurrency exchanges and related service providers must comply with global standards such as KYC and AML, and may be required to maintain compensation funds to protect users from cyberattacks, thereby reducing the risks of financial crimes.
3 Vietnam's cryptocurrency tax policy and its latest developments.
The evolution of Vietnam's cryptocurrency tax policy has closely run parallel to its regulatory policy for cryptocurrencies. Initially, due to the vagueness and contradictions in the characterization of cryptocurrencies by Vietnamese authorities, the regulatory policy was rough and one-size-fits-all, making it unrealistic to tax cryptocurrencies. However, the rapid expansion of cryptocurrency trading volumes forced the government to confront its legal status, pushing Vietnamese authorities to study cryptocurrencies. Particularly as 2024 approaches, the government has shown greater urgency in establishing a clear legal framework.
3.1 Currently, cryptocurrency trading in Vietnam remains in a tax ambiguity zone.
For a long time, due to the lack of clear legal definitions and regulatory frameworks, cryptocurrency trading in Vietnam has remained in a tax ambiguity zone. As mentioned earlier, the Ministry of Finance's Circular No. 4356/BTC-TCT in 2016, while not prohibiting cryptocurrency trading and defining it as 'property' and 'goods,' did not address specific tax provisions. Additionally, the State Bank of Vietnam (SBV) in its circular No. 5747/NHNN-PC in 2017 also explicitly stated that it does not recognize cryptocurrencies such as Bitcoin as a means of payment, further exacerbating legal uncertainty, making it difficult for tax authorities to effectively levy taxes on cryptocurrency activities. Furthermore, Vietnam's (2015 Civil Code) did not include digital assets in its defined property category, which also posed significant obstacles to the taxation and management of cryptocurrencies.
In stark contrast to Vietnam's clear stock trading tax system, activities in the crypto space were exempt from tax obligations for a long time. This situation has made Vietnam a de facto 'tax haven' in the crypto field, attracting a large number of crypto investors, but it has also resulted in a significant revenue gap for the government.
3.2 New regulations outline the legal framework for taxing cryptocurrencies.
The (Digital Technology Industry Law) will officially take effect on January 1, 2026, marking a crucial step for Vietnam in cryptocurrency tax policy. Although it does not directly introduce a cryptocurrency tax law, it lays the legal groundwork for future taxation. While it excludes securities, stablecoins, and central bank digital currencies (CBDCs), this new legislation for the first time clearly defines 'crypto assets' and 'virtual assets' at the legal level. This milestone definition changes the previously ambiguous legal status of cryptocurrencies in Vietnam, making them likely to be recognized as legal property.
In this context, the Ministry of Finance is finalizing a draft resolution on a pilot plan for the issuance and trading of cryptocurrencies. This pilot will assess the possibility of applying value-added tax (VAT), corporate income tax (CIT), and personal income tax (PIT) to crypto asset trading. The pilot plan will be conducted on a small scale and closely monitored by national regulatory agencies to study how to determine revenues from crypto assets, thereby establishing transparent regulations to avoid budget losses and protect investor rights.
Regarding proposed tax rates, various discussions are currently underway. One suggestion proposes a 0.1% transaction tax on crypto trades, similar to stock trading, which is seen as capable of generating substantial revenue without excessively dampening market vitality. If cryptocurrencies are classified as investment assets, trading profits may be subject to capital gains tax like stocks or real estate. Enterprises engaged in cryptocurrency trading may need to pay the standard 20% corporate income tax. Additionally, there are suggestions to impose a 5-10% personal income tax on profits from non-fungible tokens and a 1-5% withdrawal fee on profits for foreign investors, along with considering a 10% corporate income tax incentive for pilot exchanges (for the first five years) and exempting digital asset transactions from value-added tax to promote liquidity.
4 Outlook for Vietnam's cryptocurrency policy.
The attitude of Vietnamese authorities towards crypto assets has undergone a significant shift from early vigilance and restrictions to current active exploration and regulation. This transformation reflects a pragmatic balance between controlling financial risks (such as money laundering and fraud) and seizing opportunities for digital economic development. Authorities may have realized that simply prohibiting or ignoring crypto assets would lead to talent and capital outflows, missing the opportunity to secure a place in the global digital economy wave. In fact, Vietnamese authorities have included blockchain technology, digital assets, and cryptocurrencies in the national strategic technology list, alongside cloud computing and artificial intelligence. This indirectly indicates that Vietnam views digital assets as a key element for driving national digital transformation and economic growth.
Based on current development trends and the government's clear signals, it is reasonable to believe that Vietnam's future cryptocurrency asset policy will continue to exhibit characteristics of 'inclusive prudence.' Specifically, the following predictions can be made regarding the trajectory of Vietnam's future cryptocurrency asset policy:
First, more regulatory details will be introduced and implemented. With the effectiveness of the (Digital Technology Industry Law), more supporting regulations and guidance will be issued, clarifying the licensing requirements, operational standards, and consumer protection measures for crypto asset service providers. Regulatory sandboxes will continue to play a role, providing a controlled testing environment for new business models and technologies to accumulate experience and improve the long-term regulatory framework, ensuring that innovation occurs under controllable risks.
Secondly, the tax framework will gradually improve and be implemented. It is expected that after the (Digital Technology Industry Law) comes into effect, the Ministry of Finance will expedite the issuance of specific tax regulations, clearly defining the taxation methods, rates, and management processes for various crypto activities. The successful experience of the e-commerce platform tax system is likely to be introduced to crypto trading platforms to enhance tax efficiency and compliance. Vietnam may also develop differentiated tax policies for different types of crypto activities and consider a combination of capital gains tax and turnover tax to achieve fairness and effectiveness in taxation.
Thirdly, digital assets will gradually integrate with the traditional financial system. The Vietnamese government will continue to promote the integration of digital assets with the traditional financial system, such as exploring the development of crypto banks, national crypto exchanges, and stablecoins to build a more modern financial infrastructure.
In summary, Vietnam may become a model of 'compliance innovation' for the Southeast Asian crypto economy, competing with Thailand and Malaysia in the Southeast Asian crypto market. Vietnam has a large base of crypto users and a relatively clear strategy for digital economic development. The recently passed (Digital Technology Industry Law) and the ongoing pilot tax schemes and sandbox mechanisms indicate that it is transitioning from a 'grey zone' to 'clear regulation.' This transformation will make it stand out in Southeast Asia as a market that can embrace innovation while ensuring compliance. Vietnam's experience may provide a feasible model for other emerging markets and developing countries on how to gradually establish a sound cryptocurrency asset regulatory and tax system without stifling innovation, thus converting the potential of the crypto market into a driving force for national economic growth.
