In a landmark move that signals Vietnam’s growing ambition in the global tech arena, the country has officially legalized cryptocurrency through the passage of its comprehensive Digital Technology Industry Law. Approved by the National Assembly on June 14, this forward-thinking legislation establishes a formal regulatory framework for digital assets and sets the stage for Vietnam to emerge as a major player in the digital economy by 2026.
Set to take effect on January 1, 2026, the law marks a pivotal shift in Vietnam’s approach to blockchain and decentralized finance. For years, the government maintained an ambiguous stance on cryptocurrencies—neither fully banning nor endorsing them. Now, with clear categorization and oversight mechanisms on the horizon, Vietnam is positioning itself at the forefront of digital innovation in Southeast Asia.
A Clear Regulatory Framework for Digital Assets
The new law formally recognizes digital assets as a legitimate part of Vietnam’s financial ecosystem. It divides these assets into two distinct categories: virtual assets and cryptographic (crypto) assets. While both rely on encryption or digital technology for verification and transfer, they are explicitly separated from traditional financial instruments such as securities or central bank digital currencies (CBDCs).
This distinction is crucial. By excluding crypto assets from existing financial regulations, Vietnam avoids regulatory overlap while creating space for innovation. However, the government is actively developing detailed operational requirements, classification standards, and supervisory protocols to ensure market integrity and consumer protection.
A key component of the law is its emphasis on cybersecurity and anti-money laundering (AML) measures. The legislation mandates that all digital asset platforms comply with international standards, particularly those set by the Financial Action Task Force (FATF). This move is widely seen as an effort to address concerns that led to Vietnam’s inclusion on FATF’s “gray list” in 2023—a status that increases scrutiny on cross-border financial transactions.
With robust compliance frameworks now legally required, Vietnam aims to build trust with international partners and attract foreign investment into its burgeoning digital sector.
Fueling Innovation: Incentives for AI, Semiconductors & Digital Infrastructure
Beyond cryptocurrency, the Digital Technology Industry Law reflects Vietnam’s broader vision of becoming a regional hub for high-tech industries. To achieve this, the government has introduced a suite of incentives targeting key growth areas:
- Artificial Intelligence (AI)
- Semiconductor development
- Digital infrastructure
Companies operating in these fields will benefit from tax breaks, preferential land-use policies, and direct support for research and development. Special emphasis is placed on advancing domestic capabilities in chip design and building AI-powered data centers, sectors where Vietnam currently relies heavily on imports.
Local authorities are also tasked with fostering talent through training programs and subsidies. Meanwhile, national education reforms will integrate digital skills—such as coding, data analytics, and cybersecurity—into school curricula, ensuring a future-ready workforce.
Vietnam’s Ministry of Information and Communications stated:
"With this legislation, Vietnam has become the first country in the world to enact a standalone law dedicated specifically to the digital technology industry."
This bold claim underscores the nation’s confidence in its strategic direction. By creating a unified legal foundation for emerging technologies, Vietnam is not just catching up—it’s aiming to lead.
Combating Crypto Fraud: Law Enforcement Steps Up
While legalization opens doors for innovation, it also necessitates stronger safeguards against abuse. Recent crackdowns highlight the risks associated with unregulated crypto activities—and the government’s determination to protect investors.
In February 2025, Vietnamese police dismantled a fraudulent crypto mining platform called BitMiner, arresting four masterminds behind the scheme. Posing as a Dubai-based operation, the group sold fake mining packages and training materials, defrauding over 200 victims of more than 4 billion VND (~$157,300).
Just two months earlier, in December 2024, authorities in Hanoi thwarted another large-scale scam involving a company named Million Smiles. The firm promoted its own cryptocurrency, QFS (Quantum Financial System), using misleading spiritual narratives tied to ancestral treasures to lure investors. The operation had already siphoned 30 billion VND (~$1.17 million) from approximately 100 businesses and 400 individuals before being shut down.
These incidents underscore the importance of regulation. With clear rules now in place, authorities will have stronger legal tools to detect, investigate, and prevent such frauds—ultimately building public confidence in legitimate digital asset markets.
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What This Means for Investors and Innovators
For entrepreneurs and investors, Vietnam’s new law presents significant opportunities:
- A legally recognized environment for launching crypto-based services
- Government-backed infrastructure and R&D support
- Access to a young, tech-savvy population of nearly 100 million
- Strategic location within ASEAN’s fastest-growing digital economies
However, success will depend on transparent implementation and consistent enforcement. Market participants should monitor upcoming guidelines on licensing, taxation, and compliance—especially as Vietnam seeks alignment with global standards.
Frequently Asked Questions (FAQ)
Q: Does this law make all cryptocurrencies legal in Vietnam?
A: Yes—but under strict conditions. Only crypto assets that meet future regulatory criteria will be permitted. They must not function as securities or replace fiat currency.
Q: When does the law take effect?
A: The Digital Technology Industry Law officially comes into force on January 1, 2026, giving regulators and businesses time to prepare.
Q: Can foreigners invest in Vietnam’s digital asset market?
A: While full details are pending, the law encourages foreign participation in tech innovation. International investors may participate through licensed platforms once regulations are finalized.
Q: Is Vietnam creating its own central bank digital currency (CBDC)?
A: Not under this law. The digital assets covered here are private-sector cryptocurrencies, not state-issued digital money like a CBDC.
Q: How does this affect crypto trading in Vietnam?
A: Trading will be allowed only on government-approved exchanges that comply with AML and cybersecurity requirements.
Looking Ahead: A Digital Future Built on Trust
Vietnam’s decision to legalize and regulate cryptocurrency is more than a policy change—it’s a declaration of technological sovereignty. By integrating digital assets into a broader strategy focused on AI, semiconductors, and talent development, the country is laying the groundwork for sustainable innovation.
As enforcement mechanisms solidify and legitimate use cases emerge—from blockchain-based supply chains to decentralized identity systems—Vietnam could serve as a model for other developing nations navigating the complexities of digital transformation.
The road ahead won’t be without challenges, but with clear vision and decisive action, Vietnam is proving it’s ready to shape the future—not just follow it.