Hanoi — June 16, 2025 — In a historic legal shift, Vietnam’s National Assembly has passed the Digital Technology Industry Law, setting a comprehensive framework for digital and crypto assets. The law, scheduled to take effect on January 1, 2026, formally recognizes cryptocurrencies, establishes licensing for service providers, and offers significant incentives for blockchain innovation.
Vietnam has operated in regulatory uncertainty for years—cryptocurrency was neither legal tender nor explicitly illegal, often creating confusion among exchanges, businesses, and investors. This new law ends that ambiguity by distinguishing virtual assets (used for investment or exchange) from crypto assets, defined specifically as encryption-based tokens like Bitcoin and Ethereum.
Crucially, digital assets are now legally recognized as private property. The legislation grants state authorities powers to issue detailed licensing rules, implement anti-money laundering (AML) and cybersecurity standards, and enforce compliance aligned with Financial Action Task Force (FATF) recommendations.
This move is widely interpreted as Vietnam’s bid to shed its status on the FATF “gray list,” restoring confidence in its financial systems.
The law mandates licensing for digital-asset service providers—including exchanges, wallet operators, and token issuers—under strict supervision by key regulators such as the Ministry of Finance, State Bank of Vietnam, and Ministry of Public Security. Entities must follow AML, counter-financing of terrorism (CFT), and cybersecurity compliance protocols, and register on a central registry system.
Consumer protections are bolstered through mandatory disclosure requirements, meaning providers must clearly explain product risks and operational procedures . The state has also pledged to establish a certification regime for operators to ensure accountability.
While payment uses of crypto remain prohibited—similar to models in South Korea and Singapore—the law distinguishes Vietnam’s cautious yet progressive approach.
Beyond regulation, the law positions Vietnam to become a Southeast Asian blockchain and digital tech hub. It extends tax breaks, subsidies, land-use advantages, and supports research & development and workforce training—particularly in Web3, AI, semiconductors, and infrastructure.
Noteworthy incentives include a 10% corporate tax rate for eligible ventures over 15 years, exemptions on import duties and land fees, and fast-track visas for international talent—especially for AI and blockchain professionals.
To support tomorrow’s innovators, the law also authorizes regulatory sandboxes at both national and financial-center levels, allowing startups and platforms to test blockchain inventions in a controlled setting through 2027 .
Vietnam now stands out as the first country in Asia—and among a few globally—to establish a dedicated crypto asset law under civil legislation. Unlike jurisdictions relying on piecemeal regulations, Vietnam’s unified civil and technology code delivers clarity seldom seen in the region.
Vietnam’s Executive has aligned the law with FATF standards while targeting its gray-list status for AML compliance improvements. Once implemented, it could attract foreign investment, secure institutional entry, and empower domestic innovation—with ease of expansion into Singapore, Hong Kong, or Indonesia.
Vietnam already ranks highly in crypto adoption—#5 globally in Chainalysis order volume—with retail interest bolstered by youthful demographics and mobile usage. The industry has long awaited a formal legal foundation, and reaction to the law has been optimistic.
“This is a historic moment…giving startups and innovators the confidence to build the next generation of digital solutions. We believe this will make Vietnam a hub for blockchain talent and investment,” said Nguyen Van Thanh, CEO of a Hanoi-based blockchain firm coindesk.comhokanews.com.
International bodies and local advocacy groups also commend the move, emphasizing its balanced approach—embracing innovation while ensuring risk mitigation.
Legislation isn’t enough; its success hinges on efficient implementation:
- Draft regulatory decrees must now define clear licensing applications, KYC/AML thresholds, and classification criteria.
- Coordination will be required between agencies like the Ministry of Finance and SBV to avoid jurisdictional confusion.
- Enforcement mechanisms—audits, penalties, and compliance monitoring—must be enacted to ensure seriousness.
- Overlapping sandbox schemes from different ministries require harmonization to avoid duplication and bureaucratic friction.
Vietnam’s Digital Technology Industry Law is a bold leap into the Web3 era—legitimizing crypto ownership, licensing operators, and providing the building blocks for blockchain innovation. With civil-legislative clarity and strong incentives, Vietnam is signaling a profound pivot from regulatory caution to proactive engagement.
If successfully enforced, the law could see Vietnam become a regional leader in digital asset development, attract international capital, and set a global example for emerging-market crypto modernization. Come January 2026, Vietnam may emerge not just as Asia’s favorite destination for crypto innovation, but as a logic model for governments worldwide looking to strike balance in digital-age governance.