Vietnam has marked a historic turning point in its crypto market with the enactment of the Law on the Digital Technology Industry, set to take effect on January 1, 2026. This comprehensive legislation represents the first law entirely dedicated to regulating digital assets in the country.
Key Features of the New Law
The law introduces a two-tier classification system distinguishing between virtual assets and crypto assets. Virtual assets include non-financial tokens, loyalty points, and digital goods in the gaming sector, while crypto assets refer to those based on cryptographic technologies and distributed ledgers, such as Bitcoin and Ethereum.
Clear Regulations and International Standards
The regulations authorize the Vietnamese government to define precise operational guidelines covering licensing requirements, compliance protocols, and consumer protection measures. These guidelines are aligned with international best practices to counter money laundering and terrorism financing, addressing Vietnam’s placement on the Financial Action Task Force ‘gray list’ in 2023.
Enhanced Cybersecurity and Consumer Protection
The new framework imposes stringent cybersecurity processes to defend digital ecosystems’ integrity and strengthens user protection. This move addresses the needs of a rapidly developing yet vulnerable market, following recent episodes of massive fraud in Vietnam’s crypto sector.
Promotion of Technological Innovation
The law goes beyond crypto regulation, promoting sectors like artificial intelligence, semiconductors, and digital infrastructures. It offers incentives such as tax breaks, favorable land use conditions, and grants for research and development, with a focus on chip design and AI-dedicated data centers.
Investing in Digital Education
Recognizing that technological development depends on human resource preparation, the law mandates substantial investments in digital education and specialized training. Provincial governments will implement detailed training programs, and the national education system will be reformed to integrate digital skills from early school years.
Vietnam’s Position in the Regional Digital Landscape
This law positions Vietnam as a potential leader in Southeast Asia for blockchain innovation and digital asset adoption. The comprehensive nature of the regulation represents an unprecedented governmental commitment, integrating technological development, regulatory transparency, and consumer protection.
A Secure and Sustainable Digital Future
The Law on the Digital Technology Industry is a crucial step towards the sustainable growth of Vietnam’s crypto sector and technology landscape. By establishing clear, security-oriented regulations, Vietnam opens the door to balanced development that combines innovation, user protection, and respect for international standards. This creates a unique opportunity for investors and industry operators to participate in a regulated and dynamic market.
The new law is expected to strengthen market confidence and attract institutional investments due to its regulatory certainty and detailed compliance requirements. It suggests an ambitious roadmap towards regional technological leadership, supported by continuous training and cutting-edge infrastructure.
