Vietnam has officially passed the Digital Technology Industry Law, becoming the first country to introduce comprehensive, independent legislation specifically governing the digital technology sector, including cryptocurrency.
On June 14, 2025, the National Assembly approved the landmark law, which provides legal recognition for crypto assets and establishes a clear regulatory framework. This law will take effect on January 1, 2026.
Key Features of the New Law
The law introduces a two-tier classification system for digital assets, differentiating between “virtual assets” (such as non-financial tokens, loyalty points, and game-related digital goods) and “crypto assets” (which includes cryptocurrencies like Bitcoin and Ethereum, as well as potential NFTs).
Crucially, the law excludes securities, fiat-backed stablecoins, and central bank digital currencies (CBDCs) from its scope, offering clarity to businesses and investors operating within the digital asset space.
The law also empowers the government to establish detailed implementation guidelines, covering licensing, compliance, consumer protection, and anti-money laundering (AML) standards that align with international best practices.
Addressing International Compliance
Vietnam’s comprehensive approach to anti-money laundering (AML) and counter-terrorism financing (CTF) is a significant step in addressing the country’s placement on the FATF grey list in 2023. The legislation mandates the implementation of strict oversight measures to meet global standards, thereby restoring Vietnam’s position in international financial regulatory bodies.
With a strong focus on cybersecurity and compliance with international AML requirements, the law aims to create a safe and legitimate digital asset ecosystem, attracting institutional investors while mitigating illegal activities.
Expanding Beyond Cryptocurrency
While the cryptocurrency legalization has garnered significant attention, the Digital Technology Industry Law casts a broader vision for Vietnam’s digital future. It offers robust support for emerging technologies such as artificial intelligence, semiconductors, and digital infrastructure development.
The law also includes incentives for tech companies, including tax breaks, favorable land use policies, and research and development subsidies, especially for chip design firms and AI data centers. This comprehensive approach underscores Vietnam’s ambition to become a hub for digital innovation rather than just a crypto-friendly jurisdiction.
Additionally, the law recognizes the importance of human capital development in driving technological progress. It mandates significant investments in digital education and workforce training, with provincial governments responsible for creating comprehensive programs. The national curriculum will also be reformed to include digital skills starting at the primary school level.
Combating Cryptocurrency Fraud
The passage of this law comes at a crucial time as Vietnam continues to tackle widespread cryptocurrency fraud. Recently, authorities arrested key figures involved in a major cryptocurrency scam involving fake exchange MTC (Matrix Chain), which defrauded tens of thousands of investors of approximately VND 10 trillion (around $400 million).
Other significant scams include the BitMiner case, a mining operation disguised as a Dubai-based business that scammed over 200 victims of VND 4 billion (around $157,000), and the “Million Smiles” program, which promoted a fake cryptocurrency named QFS (Quantum Financial System), defrauding investors of VND 300 billion (around $11.7 million).
These high-profile cases highlight the importance of the new law’s consumer protection and AML provisions, which aim to create a safer environment for legitimate crypto activities.
Regional and Global Impact
Vietnam’s decisive action positions it to become a leader in Southeast Asia’s blockchain innovation and digital asset applications. While other regional powers like Singapore and South Korea have also adopted cryptocurrency-friendly policies, Vietnam’s comprehensive, independent legislation represents an unprecedented level of government investment in the digital technology sector.
This legalization is expected to boost market confidence in Vietnam’s digital asset industry, attracting institutional investors who have been waiting for clear regulatory guidelines. With its detailed framework, the law paves the way for a mature and regulated cryptocurrency market in Vietnam, setting a significant precedent for other nations in the region and beyond.
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