Vietnam Enacts Crypto Law Boosting Institutional Investment 2026

Vietnam's National Assembly has enacted a significant law recognizing and regulating crypto assets, set to take effect on January 1, 2026. This move positions Vietnam as a leader in addressing global digital asset oversight demands and sets the stage for increased institutional involvement in the region's digital technology industry.

The National Assembly passed this new law on June 14, 2025, driven by Prime Minister Phạm Minh Chính. The legislation aligns with global Anti-Money Laundering (AML) expectations and includes regulatory frameworks for Bitcoin, Ethereum, and NFTs. However, it does not cover stablecoins or Central Bank Digital Currencies (CBDCs), focusing instead on cryptographic technologies.

This regulatory move is expected to boost investment as it offers clarity for institutional players. Prime Minister Phạm Minh Chính stated, "The passage of this law demonstrates our commitment to implementing a robust regulatory framework that enhances investor confidence and aligns with international standards." Experts predict a positive impact on Vietnam’s cryptocurrency ecosystem, potentially enhancing liquidity and attracting global DeFi protocols. Historical trends suggest that regulatory clarity often leads to positive financial outcomes.

Vietnam follows in the footsteps of countries like Japan and the European Union, which have previously introduced similar crypto regulations. These regulatory precedents have contributed to the maturation of their digital asset industries. Industry observers note that Vietnam's law could significantly legitimize local markets, echoing the influence of past regulatory frameworks on international crypto adoption.

The Law on Digital Technology Industry, approved on June 14, 2025, and set to take effect on January 1, 2026, categorizes digital assets into two main groups: virtual assets and crypto assets. Virtual assets are defined as digital assets that can be transacted or stored as investments, while crypto assets use encryption methods to validate transactions and ownership. Notably, the new law excludes securities, stablecoins, and other financial instruments from these categories.

The legislation aims to strengthen Vietnam's legal framework and align it with international standards, positioning the country as a forward-thinking technology hub in Asia. It includes provisions for other forms of technology, such as Artificial Intelligence, semiconductors, and digital infrastructure. The government plans to offer incentives like tax breaks, land deals, and Research and Development support to foster growth in these sectors. Training programs will be integrated into national tech colleges to boost participation rates and provide more employment opportunities for Vietnamese citizens.

The new law also outlines guidelines for local governments to create programs that encourage the growth of the crypto industry. These guidelines are part of a broader strategy by the Vietnamese government to stimulate the national economy and trade. The legislation specifies how business practices should operate when dealing with crypto and virtual assets, ensuring a regulated environment for digital innovation.

Vietnam's proactive approach to digital assets contrasts with the cautious stance of some other countries, which have focused on regulating digital assets to ensure tax departments can keep up with the changes. By creating targeted tax incentives for key industries, Vietnam aims to become a leader in digital technology by 2030. This competitive approach may enrich the crypto market further, as investors will have the choice to embrace proactive countries rather than those with draconian regulatory approaches. The new legislation is expected to pave the way for future innovations and employment opportunities in Vietnam, aligning the country's digital economy with global standards.