Vietnam’s Digital Law Recognizes Crypto Assets and Signals Compliance Reform
New legislation defines virtual and crypto assets, aligns with global AML standards, and sets 2026 implementation timeline
Vietnam has officially entered the era of digital asset regulation with the passage of the Law on Digital Technology Industry, marking the country’s first legal framework to formally recognize crypto assets.
- Approved by the National Assembly on June 14, the law is scheduled to take effect January 1, 2026, allowing a transition period for regulatory and business adjustments.
Clear Classification of Digital Assets
The legislation introduces a two-tier classification system:
- Crypto assets are defined as digital assets utilizing encryption technology for issuance, validation, storage, and transfer.
- Virtual assets are described as digital assets used for exchange or investment, though not necessarily cryptographic in nature.
Notably, the law excludes securities and fiat currencies from its definition of crypto, ensuring clearer regulatory distinctions.
FATF Compliance and Global Alignment
Vietnam has been on the Financial Action Task Force (FATF) gray list since 2023, facing heightened scrutiny over money laundering vulnerabilities.
- The new law incorporates anti-money laundering (AML) and cybersecurity measures in line with FATF recommendations, positioning Vietnam for potential removal from the gray list.
- Regulatory bodies are mandated to develop systems to counter terrorism financing, illicit asset transfers, and proliferation of weapons.
Broader Innovation and Investment Strategy
Beyond digital assets, the law also supports Vietnam’s ambition to become a regional leader in emerging tech, targeting sectors like:
- Artificial Intelligence (AI)
- Semiconductors
- Software development and AI data centers
These industries will receive investment incentives, tax benefits, and land-use priority under formal strategic designation.
The legislation promotes human resource development, with subsidies aimed at attracting top-tier talent, building training pipelines, and encouraging controlled experimentation in technology deployment.
As Vietnam prepares for the law’s 2026 rollout, it takes a decisive step toward crypto legitimacy, while reinforcing its commitment to global financial standards and digital sector growth.
