Vietnam Passes Law to Regulate Crypto Assets by 2026

Vietnam has taken a significant step towards clarifying its stance on digital assets and fostering technological advancement with the passage of a new comprehensive piece of legislation, the Law on Digital Technology Industry. Set to take effect on January 1, 2026, this law aims to bring much-needed structure and formalize Vietnam crypto regulation, integrating digital assets firmly into the legal framework.

At its core, the new digital law aims to provide a clear legal foundation for the digital economy. It makes a crucial distinction, formally separating digital assets into two main categories: virtual assets and crypto assets. Virtual assets are digital representations of value that can be traded or transferred digitally, such as loyalty points or digital collectibles. Crypto assets, on the other hand, specifically refer to assets that use encryption and decentralized ledger technologies like blockchain, including cryptocurrencies like Bitcoin and Ethereum. The law explicitly excludes traditional financial instruments like securities and digital fiat currency from these definitions, ensuring it targets the unique characteristics of crypto and virtual assets without overlapping with existing financial regulations. The government will establish detailed rules regarding the classification, oversight, and business operations involving these assets, indicating a phased approach with the broad legal framework laid out now and specific regulations to follow.

One of the key drivers behind formalizing Vietnam crypto regulation is the need to address potential risks associated with digital assets, particularly concerning illicit finance. The new law places a strong emphasis on security and compliance, mandating robust cybersecurity measures and strict anti-money laundering (AML) protocols. These requirements are specifically designed to align with international guidelines. This focus on AML is particularly relevant given Vietnam’s current status on the Financial Action Task Force (FATF) ‘gray list’, which signifies that while Vietnam has committed to addressing strategic deficiencies in its AML/CFT regime, it needs to demonstrate progress. By incorporating stringent AML measures for crypto and virtual assets, the new law directly addresses these international concerns, signaling Vietnam’s commitment to improving its financial integrity framework. This move is crucial for building trust and facilitating smoother international financial interactions, potentially helping Vietnam move off the FATF gray list in the future.

Beyond digital assets, the Law on Digital Technology Industry is a clear statement of Vietnam’s ambition to become a leading player in the global digital economy. The legislation includes significant incentives aimed at stimulating growth and attracting investment in key technological areas. Companies operating in sectors deemed critical for the future, such as Artificial Intelligence (AI), semiconductors, and digital infrastructure, stand to benefit from measures like tax breaks. This strategic focus aims to build a robust foundation for Vietnam’s technological future. By offering tangible support to these high-growth industries, the law is actively working to cultivate the Vietnam tech sector. This not only encourages domestic innovation but also makes Vietnam a more attractive destination for foreign direct investment in technology. A thriving tech sector provides the infrastructure and talent pool necessary for the digital economy, including the responsible development and integration of digital assets and blockchain technology. The synergies between a strong tech sector and a regulated digital asset environment could create a powerful engine for economic growth.

The introduction of formal Vietnam crypto regulation through this new law is a game-changer for the Vietnam crypto market. For years, the legal status of cryptocurrencies in Vietnam has been somewhat ambiguous, operating in a gray area. This lack of clarity created uncertainty for businesses, investors, and everyday users. With the law taking effect in 2026, we can anticipate several potential impacts: increased legitimacy, compliance burden, innovation vs. regulation, and investor confidence. The specifics of the operational rules are yet to be defined by the government, and these details will significantly shape the future trajectory of the market. However, the intent to regulate and integrate is clear.

While the Law on Digital Technology Industry has been passed, the effective date of January 1, 2026, provides a crucial transition period. During this time, the Vietnamese government is tasked with developing the specific decrees, circulars, and guidelines that will detail how the law will be implemented. This includes defining the exact criteria for classifying Vietnam virtual assets and crypto assets, establishing licensing requirements for crypto businesses, setting out the precise AML/CFT obligations, and clarifying the operational rules for the sector. This period is critical for engagement between regulators and industry stakeholders. Clear, practical, and forward-thinking subsidiary legislation will be essential for the success of the Vietnam digital law. Businesses and individuals involved in the crypto space in Vietnam should closely monitor developments and prepare for the upcoming changes, ensuring they understand the new compliance landscape well before the 2026 deadline.

Vietnam’s new Law on Digital Technology Industry marks a pivotal moment for the nation’s digital economy. By formalizing Vietnam crypto regulation, categorizing digital assets, mandating robust AML measures, and offering incentives for the tech sector, the law lays a strategic foundation for growth while addressing critical risks. While the detailed rules are still in development, the commitment to a regulated and supportive environment signals a positive step towards integrating digital assets into the mainstream and positioning Vietnam as a competitive player in the global digital landscape. The path to 2026 will be one of refinement and adaptation, but the direction towards clarity and responsible growth is now firmly set.