Vietnam has taken a significant step towards legitimizing and regulating its digital economy with the passage of the Law on Digital Technology Industry, its first comprehensive legal framework recognizing crypto assets. The legislation distinguishes between virtual and crypto assets and aligns the country with global anti-money laundering standards, potentially paving the way for removal from the Financial Action Task Force’s (FATF) gray list.
Key Provisions of the Law
The National Assembly approved the law on June 14, with implementation slated for 2026. The law marks a broader push to spur innovation in emerging technologies like artificial intelligence and semiconductors while setting clearer rules for the crypto sector after years of regulatory limbo. According to The Investor Vafie Magazine, the law defines crypto assets as digital assets that use encryption or similar digital technologies for validation during creation, issuance, storage, or transfer.
Classification of Digital Assets
The legislation establishes a two-tier classification system, creating separate categories for virtual assets and crypto assets. Virtual assets are considered digital assets used for exchange or investment, while cryptocurrencies use encryption technology to validate transactions and ownership. The government retains the authority to develop detailed classifications, business conditions, and management protocols for digital assets.
Compliance with Global Standards
In compliance with global best practices, regulatory bodies must implement cybersecurity measures to prevent the proliferation of weapons, money laundering, and terrorism financing. The FATF has specifically recommended establishing clear virtual asset regulations as part of anti-money laundering compliance efforts. The law’s implementation begins on January 1, 2026, providing a transition period for businesses and regulators to prepare operational frameworks.
Incentives for Digital Technology Enterprises
Beyond cryptocurrency regulation, the law establishes extensive incentives for digital technology enterprises and innovation programs. Special policies encourage controlled technology experimentation and shared digital infrastructure development across multiple sectors. Local governments must implement human resource development policies for digital technology industries, particularly for key projects involving semiconductors, artificial intelligence systems, and digital technology products. Subsidies will support hiring high-quality personnel and workforce training programs.
The legislation prioritizes software production and AI data centers for investment, tax, and land-use incentives. These sectors receive formal recognition as strategic priorities under Vietnamese law.
