Vietnam has taken a significant step in regulating its burgeoning digital economy by officially legalizing cryptocurrencies through the "Digital Technology Industry Law." This historic legislation, passed on June 14, 2025, aims to provide clarity and structures for the rapidly expanding cryptocurrency world. Here are the key aspects:
Key Features of Vietnam's Policy on Cryptocurrencies
- *Recognition of Cryptocurrencies*: The law officially recognizes cryptocurrencies as property under civil law, paving the way for greater transparency and order in the digital asset space.
- *Classification of Digital Assets*: Digital assets are classified into two main types:
- *Virtual Assets*: Non-financial digital tools used for exchange or investment, excluding securities and digital issuances of legal tender.
- *Cryptocurrencies*: Digital units that use blockchain technology or similar technologies to verify ownership and process transactions, primarily referring to cryptocurrencies such as Bitcoin and Ethereum.
- *Regulatory Framework*: The government is tasked with defining terms of operation, categories of operation, and compliance requirements for digital asset activities, to ensure cybersecurity, combat money laundering, and prevent terrorism financing.
- *Incentives for Innovation*: The law offers tax reductions, financial support, special visas, and other incentives to support local startups and retain local talent in the digital technology sector.
Impacts and Objectives
- *Improving International Standing*: The new law is expected to help Vietnam align with global standards and possibly remove itself from the gray list of the Financial Action Task Force.
- *Growth of the Digital Economy*: The legislation aims to drive economic growth by promoting innovation in semiconductors, artificial intelligence, and digital infrastructure.
- *Workforce Development*: The law emphasizes the importance of digital technology skills and calls for training programs to develop a digitally skilled workforce.