#VietnamCryptoPolicy Vietnam has made a landmark move by officially legalizing crypto assets through the newly passed Digital Technology Industry Law, which will take effect on January 1, 2026. This law is the first comprehensive legal framework in Vietnam to define, classify, and regulate digital assets, marking a significant shift from previous regulatory ambiguity[5][6].

The legislation categorizes digital assets into two main groups: virtual assets, which are non-financial digital tools used for exchange or investment (excluding securities and tokenized fiat currency), and crypto assets, which are encrypted digital units validated by blockchain or similar technologies, including cryptocurrencies like Bitcoin and Ethereum[5][6].

Vietnam's government has been motivated by the need to align with international standards, especially to address concerns from the Financial Action Task Force (FATF), which had placed Vietnam on its "gray list" due to insufficient anti-money laundering safeguards related to virtual assets. The new law empowers regulatory agencies to enforce robust cybersecurity, anti-money laundering, and terror financing prevention measures based on global best practices, aiming to boost investor confidence and market safety[5][6].

The law also introduces incentives such as state subsidies, tax exemptions, and visa perks to encourage blockchain startups and digital infrastructure development, reflecting Vietnam's broader ambition to become a key player in the global digital technology sector, including semiconductors and AI[5][6].

Additionally, the government is piloting a regulatory sandbox to test crypto asset trading platforms, compliance frameworks, and the use of stablecoins, with the Ministry of Finance and the State Bank of Vietnam leading coordination efforts alongside other ministries to minimize financial risks and ensure monetary stability[1].

Vietnam's crypto market is among the world's most vibrant, with 17 million citizens holding digital assets and $105 billion in capital inflows recorded in 2023-2024, ranking the country fifth