Vietnam Passes Law Recognizing Digital Assets From 2026

Vietnam has taken a significant step towards integrating digital finance into its economy with the passage of the Digital Technology Industry Law. Effective from January 1, 2026, this new legislation formally recognizes and regulates digital assets, marking a pivotal moment in the country's digital transformation journey. The law defines two types of digital assets: virtual assets, which are intended for exchange or investment but are not securities, central bank digital currencies (CBDCs), or fiat money, and crypto assets, which are based on encryption and blockchain technology.

The exclusion of securities and CBDCs from the new law is a strategic move to protect the traditional financial system. This distinction provides clarity and prevents overlap, ensuring that the regulation of digital assets does not interfere with established financial mechanisms. The law also grants the government the authority to develop additional regulations concerning the business, management, and classification of digital assets, allowing for flexibility as technology evolves.

The passage of this law follows a directive issued by Prime Minister Pham Minh Chinh in March 2025, which instructed the Ministry of Finance and the State Bank of Vietnam to draft laws on digital assets by the end of the month. This directive underscores the growing economic relevance of cryptocurrency globally and Vietnam's proactive approach to embracing this emerging technology.

In addition to recognizing digital assets, the new law emphasizes security and compliance. It mandates strict adherence to anti-money laundering (AML), counter-terrorism financing (CFT), and cybersecurity requirements, aligning Vietnam with international best practices and standards. This focus on compliance is crucial for Vietnam, which is currently on the Financial Action Task Force (FATF) gray list due to its AML system. By enhancing its regulatory framework, Vietnam aims to improve its international profile and eventually exit the FATF watch list.

The Digital Technology Industry Law also offers tax and investment incentives for technology firms, promoting digital innovation and supporting startups. The legislation includes measures such as training programs, tax incentives, and investment incentives for companies operating in key industries like software, semiconductors, artificial intelligence (AI), and data centers. Local governments are encouraged to foster talent development through subsidies and training programs, further bolstering Vietnam's digital economy.

The law highlights the strategic importance of semiconductors, with Vietnam expressing interest in establishing a complete semiconductor value chain, including design, testing, packaging, and global integration. This initiative positions Vietnam as a significant player in the global chip supply chain, aligning with the country's broader goals of technological advancement and economic resilience.

In summary, the Digital Technology Industry Law is more than just a regulatory milestone; it is an ambitious effort to build a robust, innovation-driven economy in Vietnam. By combining well-defined crypto regulations with aggressive initiatives to drive technology, Vietnam is paving the way for a resilient and competitive digital future. This comprehensive approach not only regulates digital finance but also fosters an environment conducive to technological growth and economic development.