Vietnam Regulates Crypto Market With New Law Aiming For 2026

Vietnam has officially exited the crypto “grey zone” with the passage of the Law on Digital Technology Industry. This comprehensive legislative package, approved on June 14, recognizes and regulates digital assets for the first time in one of the world’s most active crypto markets. The law, which will take effect on January 1, 2026, aims to introduce changes such as a licensing regime for exchanges, anti-money laundering (AML) safeguards, and tax rules tailored to digital assets. This move positions Vietnam as a potential leader in Southeast Asia’s regulated crypto market.

The new framework divides digital assets into two categories: “crypto assets” and “virtual assets.” Crypto assets, which include tokens with financial functions, will be subject to licensing, capital requirements, and Know Your Customer (KYC) rules. Virtual assets, such as in-game tokens or loyalty points, will fall under looser obligations. The law mandates that exchanges be licensed, hold minimum capital, and maintain local offices. Unlicensed operators face fines, and sub-decrees covering tax, enforcement, and technical compliance are expected in the coming months.

The regulatory push follows Vietnam’s addition to the Financial Action Task Force (FATF) “grey list” in 2023 for AML/CTF enforcement deficiencies. This listing limited cross-border capital flows and threatened Vietnam’s growing fintech ecosystem. By adopting FATF-style safeguards, Hanoi is signaling its intention to get delisted quickly. Vietnam ranks fifth globally in crypto adoption, with approximately 17 million holders and estimated holdings of $100 billion. The absence of clear rules had slowed institutional interest and left domestic innovation in limbo. With the new legislation, local developers gain legal protection, foreign exchanges can apply for licenses, and venture capital firms gain confidence that exits won’t be trapped in regulatory dead ends.

The compliance runway until January 2026 gives everyone time to prepare for an expected spike in legal entity registrations and hiring by the fourth quarter. Vietnam’s ambitions go beyond compliance. The law provides incentives including research and development (R&D) tax breaks, blockchain pilot sandboxes, and subsidies for high-skilled tech labor. This is part of a broader push to grow the country’s digital economy, which was forecast to reach $45 billion in gross merchandise value (GMV) by the end of the year. Observers say Vietnam could join Singapore and Thailand as a regional crypto hub, especially as other ASEAN nations lag. With a youthful, tech-savvy population and robust developer community, Vietnam’s entry into regulated crypto could redraw the region’s Web3 map.

Key questions remain. The law is broad in scope but light on specifics. Sub-decrees due in the next 180 days will determine how taxes are levied, how custody works, and how decentralized finance (DeFi) platforms and stablecoins are treated. As financial authorities race to build internal expertise, enforcement capacity is also a concern. Still, the message from Hanoi is clear: regulation, not restriction, is the path forward. By replacing ambiguity with architecture, Vietnam is betting that a licensed, rule-bound crypto industry can become a pillar of its broader digital economy and a magnet for global capital.