Vietnam legalizes crypto under new digital technology law

Vietnam has officially legalized crypto assets with the approval of the Law on Digital Technology Industry by the National Assembly on June 14, 2025. This landmark legislation, set to take effect on January 1, 2026, formally incorporates crypto assets into the country’s legal framework for the first time, marking a pivotal step in Vietnam’s digital transformation journey.

The law categorizes digital assets into two distinct types: virtual assets and crypto assets. Virtual assets are digital instruments used for exchange or investment, while crypto assets rely on encryption technologies to validate transactions and ownership. Both categories explicitly exclude securities, digital fiat currencies, and other financial instruments governed by existing laws, providing clarity and precision in regulatory oversight.

The Vietnamese government is tasked with detailing the classification, business conditions, and management mechanisms for these digital assets. Regulatory agencies must enforce cybersecurity protocols and implement measures to prevent money laundering, terrorist financing, and the proliferation of weapons of mass destruction. These safeguards align with international best practices, addressing concerns raised by the Financial Action Task Force (FATF), which has placed Vietnam on its “gray list” since 2023 due to unclear virtual asset regulations.

This new legal framework aims to foster innovation, attract investment, and encourage broader adoption of digital currencies in Vietnam, potentially boosting financial inclusion and economic growth. The law also signals Vietnam’s ambition to become a regional digital powerhouse by supporting blockchain innovation and integrating digital technologies into its financial infrastructure.

Vietnam’s legalization of crypto assets under the Digital Technology Industry Law represents a historic milestone that provides a clear, comprehensive regulatory foundation for digital assets, ensuring security and transparency while promoting the country’s position in the global digital economy.

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