Vietnam Advances Crypto Regulation with New Digital Law
Vietnam has officially embraced crypto assets with the Law on Digital Technology Industry.this is the country’s first thorough legal framework for digital assets. The law distinguishes between virtual and crypto assets,aligning Vietnam with global anti-money laundering standards. This move could help the country get off the FATF gray list.
The National Assembly passed the law on June 14. It aims to boost the digital economy while ensuring safety. The law separates virtual and crypto assets, clarifying their roles.It excludes securities and fiat currencies from the crypto definition.The law also sets up a two-tier classification system for digital assets.This step is crucial for its digital economy.
Being on the FATF gray list since 2023 has caused issues for financial institutions. The law defines crypto assets as digital assets that use encryption or similar digital technologies for validation during creation, issuance, storage, or transfer.
The law defines crypto assets as digital assets that use encryption or similar digital technologies for validation during creation, issuance, storage, or transfer. The legislation establishes clear distinctions between different categories of digital assets and also excludes securities and fiat currencies from the crypto asset definition.
The new law creates separate categories for virtual assets and crypto assets. Virtual assets are considered as digital assets used for exchange or investment. At the same time, cryptocurrencies use encryption technology to validate transactions and also ownership. The government retains the authority to develop detailed classifications, business conditions, and management protocols for digital assets. In compliance with global best practices, regulatory bodies must implement cybersecurity measures to stop the proliferation of weapons, money laundering, and terrorism financing. the FATF has specifically recommended establishing clear virtual asset regulations as part of anti-money laundering compliance efforts.
implementation begins Jan. 1, 2026 and provides a transition period for businesses and regulators to prepare operational frameworks. The Ministry of Science and Technology drafted the legislation as part of broader digital technology sector development initiatives. Beyond cryptocurrency regulation, the law establishes extensive incentives for digital technology enterprises and innovation programs. Special policies encourage controlled technology experimentation and shared digital infrastructure development across multiple sectors.
Local governments must implement human resource development policies for digital technology industries, especially for key projects involving semiconductors, artificial intelligence systems, and digital technology products. Subsidies will support hiring high-quality personnel and workforce training programs.
The legislation also prioritizes software production and AI data centers for investment, tax, and land-use incentives. These sectors receive formal recognition as strategic priorities under Vietnamese law.
