Vietnam’s New Digital Law Brings Cryptocurrency into the Legal Fold
By Vignesh Karunanidhi
June 16, 2025 | 2:28 AM UTC
Edited by Anthony Patrick
Vietnam has taken a significant step toward legitimizing cryptocurrency within its financial framework with the recent passage of the Law on Digital Technology Industry. This marks the first comprehensive legal framework in the country to officially recognize crypto assets, aiming to integrate digital currencies into the economic fabric of the nation.
A Step Towards Legal Recognition
The National Assembly approved the landmark legislation on June 14, 2025, setting the stage for a clearer regulatory environment for the digital economy. The law is slated for implementation on January 1, 2026, providing time for businesses and authorities to adapt to the new legal landscape. It promises to align Vietnam’s digital economy with global anti-money laundering (AML) standards, which is crucial for the nation as it aspires to be removed from the Financial Action Task Force’s (FATF) gray list, a status it has held since 2023. Vietnam’s inclusion on this list has resulted in heightened scrutiny of cross-border transactions and posed compliance challenges for local financial institutions. The new regulations are expected to enhance transparency in the financial system and foster confidence among both domestic and foreign investors.
Defining Crypto within a Legal Framework
The Law on Digital Technology Industry establishes a two-tier classification system, effectively distinguishing between virtual assets and crypto assets. According to reports from The Investor Vafie Magazine, crypto assets are defined as digital assets that utilize encryption or similar technologies for their validation during creation, issuance, storage, or transfer. Notably, securities and fiat currencies are explicitly excluded from this definition, allowing for a more focused regulatory approach.
This legal clarity is set to facilitate innovation within the cryptocurrency sector while ensuring appropriate regulatory measures are in place. The government retains the authority to further develop detailed classifications and management protocols for digital assets in compliance with established best practices.
Regulatory Compliance and Anti-Money Laundering
In line with FATF recommendations, the new law mandates that Vietnamese regulatory bodies implement cybersecurity measures aimed at preventing illicit activities, including money laundering and financing of terrorism. This approach reinforces the government’s commitment to maintaining a secure financial environment as it integrates cryptocurrency into its economy.
Supporting Innovation and Technology Development
Beyond cryptocurrency regulation, the legislation also lays the groundwork for extensive incentives aimed at promoting innovation in the technology sector. Policies designed to stimulate technology experimentation and collaborative infrastructure development across various industries have been established. Additionally, key projects focusing on semiconductors and artificial intelligence will benefit from enhanced support for human resource development, coupled with subsidies for hiring skilled personnel.
Recognition of software production and AI data centers as strategic priorities underscores the Vietnamese government’s forward-looking vision for a thriving digital technology industry.
Conclusion
Vietnam’s Law on Digital Technology Industry symbolizes a transformative phase for its digital economy, particularly in the realm of cryptocurrencies. As the country moves towards implementation, it not only sets the foundation for regulatory compliance but also opens doors for significant technological advancements and investment opportunities in emerging sectors. The coming years are poised to showcase how Vietnam navigates this new legal territory and leverages its potential in the digital landscape.