Vietnam Legalizes Cryptocurrency, Aims for Global Tech Leadership
By Amin Haqshanas
June 15, 2025
Vietnam has taken a significant step in the digital economy arena by legalizing cryptocurrency through its newly enacted Law on Digital Technology Industry. The National Assembly of Vietnam approved the legislation on June 14, a pivotal move that is set to bring cryptocurrency assets under official regulatory oversight starting January 1, 2026. ### Understanding the New Legislation
The Law on Digital Technology Industry categorizes digital assets into two types: virtual assets and crypto assets. Both of these types utilize encryption and digital technology for validation and transfer. Notably, the law explicitly excludes securities, digital fiat currencies, and other financial instruments from this classification.
Under this new law, the Vietnamese government is tasked with defining the specific business conditions and classifications for these asset types, thus paving the way for a more structured and secure environment for cryptocurrency transactions and operations.
In an effort to align with international standards, the law also introduces robust cybersecurity measures and Anti-Money Laundering (AML) protocols. This move responds to the concerns raised by the Financial Action Task Force (FATF), as Vietnam has been on the FATF’s "gray list" since 2023, indicating a need for improvements in its AML framework.
Aiming for Digital Technology Leadership
Vietnam is not just focusing on cryptocurrency; the legislation signifies its ambition to emerge as a digital technology hub in Southeast Asia. The law provides a range of incentives for businesses engaged in developing artificial intelligence (AI), semiconductors, and digital infrastructure. These incentives include tax breaks, support for research and development, and benefits related to land use, specifically targeting firms involved in essential technologies such as chip design and AI data centers.
To support this growth, regional governments are being called upon to assist in workforce development through training programs and subsidies. Furthermore, the education system in Vietnam will incorporate digital technology skills within the national curriculum, ensuring that the workforce is well-equipped for the technological advancements on the horizon.
The Vietnamese government has proudly announced that with this legislation, Vietnam becomes the first country in the world to enact a dedicated standalone law governing the digital technology industry. This groundbreaking move could set a precedent for other nations seeking to regulate the burgeoning field of digital technology and cryptocurrencies.
Recent Challenges in the Crypto Space
Despite this progressive legislation, Vietnam’s journey into the cryptocurrency realm has not been without challenges. In February 2025, Vietnamese authorities arrested four individuals linked to a fraudulent crypto mining operation, BitMiner, which falsely claimed to be based in Dubai. This scam deceived over 200 victims, resulting in the loss of more than 4 billion Vietnamese dong (approximately $157,300) by offering fake mining packages and educational materials.
In a separate incident in December 2024, the Hanoi City Police thwarted an elaborate crypto scam known as Million Smiles. This company, which had already duped victims out of 30 billion Vietnamese dong (about $1.17 million), falsely promoted its in-house cryptocurrency, QFS, with misleading advertisements tied to ancestral treasures and spiritual claims.
Looking Ahead
As Vietnam implements its new digital technology law, it seeks to strike a balance between fostering innovation and ensuring a secure environment for investors and consumers alike. The regulation of cryptocurrency is expected to provide a foundational framework that encourages growth in the digital sector while addressing the previously encountered issues related to fraud and scams.
As Vietnam continues its trajectory towards becoming a leader in digital technology, the successful implementation of this law will be closely monitored both domestically and internationally.