#VietnamCryptoPolicy Vietnam Crypto Policy: Landmark Legalization and Regulatory Framework

Vietnam has enacted its first comprehensive crypto law, the Law on Digital Technology Industry, approved on June 14, 2025, and effective January 1, 2026. This pioneering legislation establishes Vietnam as the first country with a standalone digital assets law, classifying them into two categories:

Virtual Assets: Non-financial tokens (e.g., loyalty points, gaming items).

Crypto Assets: Blockchain-based assets like Bitcoin and Ethereum, validated via encryption, excluding securities, stablecoins, or CBDCs .

Key Provisions:

Regulatory Clarity: Mandates government-defined licensing for exchanges, wallets, and issuers, with strict Anti-Money Laundering (AML) and cybersecurity protocols aligned with FATF standards to address Vietnam’s "gray list" status .

Consumer Protection: Enhanced safeguards against scams, following high-profile fraud cases like BitMiner ($157K theft) and "Million Smiles" ($1.17M scheme) .

Tech Hub Ambitions: Incentives for AI, semiconductors, and blockchain infrastructure, including tax breaks, R&D grants, and workforce training. A regulatory sandbox will pilot innovations in Ho Chi Minh City and Da Nang .

**Strategic Impact**:

The law positions Vietnam as a Southeast Asian Web3 leader, aiming to attract institutional investment and retain talent amid competition from Singapore and South Korea. It also explores a state-backed CBDC for future integration . By balancing innovation with FATF compliance, Vietnam targets removal from the gray list by 2026 while fostering a $500B+ digital economy .