Vietnam Legalises Crypto, Paving the Way for Digital Innovation

Vietnam is taking clear steps to become a key technology hub in Southeast Asia. The government’s new law provides a formal foundation for the country’s fast-growing digital asset sector, with the stated goals of encouraging innovation and ensuring proper oversight.

The landmark ‘Law on the Digital Technology Industry’ has been passed by the country’s National Assembly. This new act establishes the first official set of rules for crypto assets and other digital assets.

Final approval for the law came on June 14, 2025, with a full implementation date set for January 1, 2026. A primary objective is to move Vietnam’s expanding crypto market into a supervised and well-defined structure.

A New Regulatory Framework

The country’s digital assets have operated for years in a legal gray area, which created uncertainty for many. This new legislation is designed to finally eliminate that ambiguity.

It introduces a formal classification system that divides digital assets into two distinct groups: “virtual assets” and “crypto assets.”

The law describes ‘virtual assets’ as non-financial digital items suitable for exchange or investment. It specifically excludes digital fiat currencies and other regulated financial products.

Crypto assets, on the other hand, are defined as encoded digital tokens. They rely on blockchain or similar distributed technologies to process transactions and verify ownership.

The state is now legally required to outline precise business conditions, classifications, and control mechanisms for these assets.

Addressing Global Pressure And Past Crises

The law is also a direct response to international pressure. The Financial Action Task Force (FATF) placed Vietnam on its ‘gray list’ in 2023, pointing to shortfalls in the nation’s oversight of the sector.

In response, the new law requires all virtual asset service providers (VASPs) to adopt stricter protocols. These new rules must meet global benchmarks for cybersecurity, anti-money laundering (AML), and countering terrorist financing (CTF).

The drive for regulation was also a direct result of damaging fraud cases inside Vietnam. These incidents made the serious risks for investors in an open market impossible to ignore.

One widely reported case was the shutdown of the ‘BitMiner’ platform in February 2025. This criminal operation had defrauded more than 200 victims.

That shutdown occurred just after another major case in December 2024. In that instance, Hanoi police disrupted a large-scale crypto scheme that targeted hundreds of individuals and companies.

A Vision Beyond Cryptocurrency

This law is a key part of Vietnam’s broader national strategy. The country wants to become a leading force in the global technology market.

The legislation offers a package of incentives for businesses active in artificial intelligence (AI) technology, semiconductor technology development, and digital infrastructure.

The introduced benefits include tax relief, improved land access, and direct funding for R&D. Support will be directed specifically toward firms that are creating key technologies, like proprietary chip designs or AI-focused data centers.

Local authorities are now required to fund new job training initiatives and help integrate digital literacy into the main school curriculum. These two efforts are intended to build a more resilient digital economy and improve Vietnam’s global standing.

Outlook and Challenges

The law’s final outcome, however, is not certain and depends on how it is implemented. Regulators are now tasked with navigating a difficult balancing act.

They must provide strong oversight to keep the market stable. At the same time, they must not stifle the innovation this law is supposed to encourage.

The new framework provides a necessary foundation. Its tangible impact on the market, however, is yet to be seen.