Vietnam has taken a significant step in regulating its burgeoning digital asset market with the passage of its first digital asset law, known as the Law on Digital Technology Industry. The law, approved by Vietnam’s National Assembly, legalizes cryptocurrency and categorizes digital assets into two main types: crypto and virtual assets. This legislation is set to come into effect on January 1, 2026, and represents a major milestone in the country’s efforts to establish a comprehensive legal framework for digital assets and related technologies.
Key Provisions of the Law
The new law explicitly distinguishes between crypto and virtual assets, while clarifying that neither classification includes securities, central bank digital currencies (CBDCs), or other traditional financial instruments. The central government has been entrusted with overseeing the enforcement of this law, which encompasses a broad range of areas including compliance, anti-money laundering (AML), cybersecurity, and counter-terrorism financing.
Regulatory Oversight and Compliance
The central government will be responsible for defining asset classifications, business conditions, and compliance frameworks. Vietnam’s regulatory agencies will enforce measures to prevent money laundering, terrorism financing, and weapons proliferation. This move is seen as a response to criticisms from the Financial Action Task Force (FATF), an international organization founded by the G7, which placed Vietnam on its gray list in 2023 due to inadequate AML provisions.
Incentives for Technology and Innovation
Beyond cryptocurrency regulation, the law also includes provisions aimed at attracting foreign investment into high-value segments of the semiconductor economy. It offers incentives for firms engaged in chip research and development (R&D) and supply chain localization. Additionally, the legislation provides benefits to individuals and institutions working in priority industries such as artificial intelligence (AI), chip production, and AI data centers. These benefits include access to capital, tax relief, and land-use concessions.
Implications for Vietnam’s Digital Economy
The passage of this law is expected to boost Vietnam’s leadership in digital technology by creating a more favorable environment for innovation and investment. By establishing a clear legal framework for digital assets and providing incentives for key industries, Vietnam aims to accelerate its entry into high-value segments of the global semiconductor economy.
As Vietnam moves forward with the implementation of this law, it is likely to be closely watched by the international community, particularly in terms of its impact on the country’s digital economy and its potential removal from the FATF’s gray list.
