Vietnam Legalizes Cryptocurrency in Landmark Digital Technology Law

Vietnam has taken a groundbreaking step in cryptocurrency regulation by officially passing the Law on Digital Technology Industry, making it the first country worldwide to enact comprehensive standalone legislation specifically dedicated to the digital technology sector.

The historic law, passed by the National Assembly on June 14, 2025, grants full legal recognition to crypto assets and establishes a clear regulatory framework that takes effect January 1, 2026, Vn Economy reported on Sunday.

Under the new law, Vietnam has established a sophisticated two-tier classification system for digital assets. The framework distinguishes between "virtual assets, "typically non-financial tokens, loyalty points, or gaming-related digital goods, and "crypto assets," which encompass assets based on cryptographic and distributed ledger technologies such as Bitcoin, Ethereum, and potentially NFTs.

Crucially, the legislation explicitly separates these categories from securities, fiat-backed stablecoins, and Central Bank Digital Currencies (CBDCs), which remain outside this legislative scope. This clear delineation provides much-needed clarity for businesses and investors operating in the digital asset space.

The law empowers the Vietnamese government to develop detailed implementation guidelines, including licensing requirements, compliance protocols, consumer protection measures, and robust Anti-Money Laundering (AML) standards that align with international best practices.

Addressing International Compliance Concerns

Vietnam's comprehensive approach to AML and counter-terrorism financing measures reflects the country's determination to address its placement on the Financial Action Task Force (FATF) gray list in 2023. The legislation mandates strict oversight mechanisms designed to meet global standards and restore Vietnam's standing with international financial watchdogs.

The regulatory framework emphasizes cybersecurity processes and requires compliance with international AML requirements, signaling Vietnam's commitment to creating a legitimate and secure digital asset ecosystem that can attract institutional investment while preventing illicit activities.

While cryptocurrency legalization has garnered significant attention, the Law on Digital Technology Industry encompasses a far broader vision for Vietnam's digital future. The legislation establishes comprehensive support for emerging technologies including artificial intelligence, semiconductors, and digital infrastructure development.

The law provides substantial incentives for technology companies, including tax breaks, favorable land-use policies, and research and development subsidies—particularly targeting chip design companies and AI data centers. This holistic approach demonstrates Vietnam's ambition to become a comprehensive digital technology hub rather than simply a crypto-friendly jurisdiction.

Recognizing that technological advancement requires human capital development, the new law mandates significant investments in digital education and workforce training. Provincial governments are tasked with developing comprehensive education and training programs, while national curricula will be reformed to integrate digital technology skills from primary education levels.

Combating Cryptocurrency Fraud

The legislation comes at a critical time as Vietnam continues to battle widespread cryptocurrency fraud. Recent high-profile cases have highlighted the urgent need for regulatory clarity and consumer protection measures.

Last month, Vietnamese authorities arrested key figures behind a massive cryptocurrency scam involving the fake exchange MTC (Matrix Chain), which defrauded tens of thousands of investors of nearly 10 trillion Vietnamese dong (approximately $400 million).

Other significant cases include the BitMiner scam , which posed as a Dubai-based mining operation and defrauded over 200 victims of 4 billion VND (~$157,000), and the "Million Smiles" scheme that used fabricated spiritual claims to promote a fake cryptocurrency called QFS (Quantum Financial System), stealing 30 billion VND (~$1.17 million) from investors.

These cases underscore the importance of the new law's consumer protection provisions and AML requirements in creating a safer environment for legitimate cryptocurrency activities.

Regional and Global Implications

Vietnam's decisive action positions the country as a potential Southeast Asian leader in blockchain innovation and digital asset adoption. While other regional powers like Singapore and South Korea have implemented crypto-friendly policies, Vietnam's comprehensive standalone legislation represents an unprecedented level of governmental commitment to the digital technology sector.

The legalization is expected to significantly boost market confidence in Vietnam's digital asset sector and attract institutional investors who have been waiting for regulatory clarity. The comprehensive nature of the legislation, covering everything from basic definitions to sophisticated compliance requirements, provides the foundation for a mature and regulated cryptocurrency market.