Vietnam Legalizes Crypto Assets, Promotes Digital Economy

Vietnam has made a significant stride in its digital transformation journey by officially recognizing Bitcoin and other cryptocurrencies through the passage of the Law on Digital Technology. This historic legislation, approved by the National Assembly, sets the stage for a more transparent and ordered crypto landscape within the country.

The new law, effective from January 1, 2026, introduces a distinction between virtual assets and crypto assets, avoiding conventional financial asset classifications such as securities or digital currencies. This differentiation is a crucial step towards establishing a clear regulatory framework for the burgeoning crypto industry. The Vietnamese authorities have, for the first time, acknowledged cryptocurrencies on a national scale, signaling a promising start for investors and crypto enthusiasts.

While the law does not provide a comprehensive regulatory framework at this stage, it serves as a solid foundation for future development. The legislation also promotes the integration of blockchain and artificial intelligence (AI) technologies, underscoring Vietnam's commitment to becoming a digital-first economy. This move aligns with international anti-money laundering (AML) requirements and is expected to enhance Vietnam's relationship with the Financial Action Task Force (FATF), potentially leading to its removal from the group's watchlist.

Vietnam's decision to legalize crypto assets is part of a broader global trend, with countries like Ukraine and Pakistan also considering similar measures. This shift indicates a growing recognition of the digital future of finance and positions Vietnam as a key player in the global competition for digital asset leadership. The law's provisions are designed to create a supportive environment for digital asset transactions, ensuring they are conducted securely and transparently.

By taking this bold step, Vietnam is not only embracing new technologies but also positioning itself as a forward-thinking nation open to the possibilities offered by digital currencies. This move is expected to attract more investors and entrepreneurs, further boosting the region's economic growth and development. The law's incentives for the development and use of digital assets are likely to encourage more investment in the crypto space and foster innovation in related technologies.