Vietnam Passes Landmark Crypto Asset Law, Sets Stage for Digital Economy Expansion
Vietnam’s National Assembly has formally passed its first detailed digital technology law, introducing a clear regulatory structure for crypto assets. The legislation, authorized on June 14, 2025, is set to work on January 1, 2026, marking a critical shift in the country’s approach to digital finance and signaling its intent to foster a more structured and transparent digital economy. Under the new law, digital assets are classified into two distinct categories: “virtual assets,” which encompass digital tokens used primarily for exchange or investment purposes, and “crypto assets,” which are defined as blockchain-based tokens using encryption technology. This nuanced classification excludes securities, fiat-backed stablecoins, and central bank digital currencies (CBDCs), thus allowing regulators to focus specifically on decentralized digital assets without intruding on other financial instruments.
Regulatory Clarity and Financial Crime Prevention The introduction of this legal framework is expected to bring much-needed regulatory clarity to Vietnam’s rapidly growing digital asset market. By establishing clear definitions and compliance requirements, the government aims to create a safer environment for investors and encourage the responsible growth of blockchain-based businesses. The framework empowers the government to issue licenses, set operational standards, and enforce robust compliance measures for entities operating in the digital asset space. Crucially, the law incorporates stringent requirements related to cybersecurity, anti-money laundering (AML), and counter-terrorism financing (CTF). These provisions align Vietnam’s regulatory approach with international best practices and financial oversight standards, a significant step as the country seeks to address its ongoing placement on the Financial Action Task Force (FATF) grey list since 2023.
Vietnam’s inclusion on the FATF grey list has brought increased scrutiny, and policymakers are optimistic that the new regulations will demonstrate the country’s commitment to enhancing financial transparency and integrity. The legislation also comes in response to a series of prominent fraud cases that have shaken public confidence in the sector. Notable scams such as BitMiner and Million Smiles resulted in significant losses for Vietnamese investors during late 2024 and early 2025. These incidents underscored the urgent need for stronger consumer protections and regulatory oversight. With the new law in place, authorities aim to significantly reduce the risk of similar fraudulent schemes and enhance investor protection.
Beyond its crypto-specific measures, the legislation is part of a broader digital technology initiative aimed at transforming Vietnam into a regional hub for technological innovation. The government is offering a range of incentives to spur growth in related sectors, including tax incentives, land-use benefits, and research and development support for industries such as artificial intelligence, semiconductor manufacturing, and digital infrastructure development. Educational initiatives are also a key component of Vietnam’s long-term strategy. The law includes provisions to enhance digital literacy, with updated national curricula and workforce development programs designed to equip Vietnamese citizens with the skills needed to thrive in a rapidly evolving digital economy. Provincial governments are expected to play an active role in implementing these programs, ensuring that the benefits of technological advancement are distributed across the country.
Positioning Vietnam in the Global Digital Economy Vietnam’s move to regulate crypto assets places it among a growing number of Southeast Asian countries that are proactively shaping their digital economies. By striking a balance between innovation and risk management, Vietnam aims to attract both domestic and foreign investment while safeguarding the stability of its financial system. As the global landscape for digital assets continues to evolve, Vietnam’s new legislation may serve as a model for other emerging markets looking to embrace the potential of blockchain technology while mitigating its associated risks.
