Vietnam Officially Legalizes Crypto: New Digital Assets Law Takes Effect 2026

Vietnam makes crypto sandbox

Vietnam has made history by becoming the first country to pass a standalone law specifically dedicated to the digital technology industry. The National Assembly approved the groundbreaking Law on Digital Technology Industry on June 14, 2025, officially recognizing cryptocurrency and digital assets under regulatory oversight.

Key Highlights of Vietnam’s Crypto Law

The legislation, effective January 1, 2026, establishes a comprehensive framework for digital asset regulation. The law categorizes digital assets into two distinct groups:

• Virtual assets – Digital tokens using encryption for validation
• Crypto assets – Cryptocurrency specifically using cryptographic technology

Both categories exclude traditional securities, digital fiat currencies, and other conventional financial instruments. This clear distinction provides much-needed regulatory clarity for the Vietnamese cryptocurrency market.

Vietnamese lawmakers approve Digital Technology Industry Law ( Báo Chính phủ )

Compliance and Security Measures

The new law mandates strict cybersecurity and Anti-Money Laundering (AML) safeguards aligned with international standards. This strategic move addresses concerns from the Financial Action Task Force (FATF), as Vietnam has been on the FATF “gray list” since 2023.

Government authorities now have the power to establish specific business conditions, classifications, and oversight mechanisms for digital assets. This regulatory framework aims to balance innovation with consumer protection.

Beyond Crypto: Vietnam’s Digital Ambitions

The legislation extends far beyond cryptocurrency regulation. Vietnam’s government introduces sweeping incentives for enterprises in:

• Artificial Intelligence development
• Semiconductor manufacturing
• Digital infrastructure projects

These incentives include tax breaks, land-use benefits, and R&D support, particularly targeting firms developing core technologies like chip design and AI data centers.

Vietnam’s digital technology industry expansion ( VietNamNet )

Market Impact and Regional Implications

This landmark legislation positions Vietnam as a potential cryptocurrency hub in Southeast Asia. The clear regulatory framework could attract international blockchain companies and cryptocurrency exchanges to establish operations in Vietnam.

Regional governments are directed to support workforce development through subsidies and training programs, while education policies will integrate digital technology skills into national curricula.

What This Means for Investors

For cryptocurrency investors and blockchain companies, Vietnam’s new law represents:

• Regulatory certainty in a major Southeast Asian market
• Compliance pathways for digital asset operations
• Government backing for blockchain innovation
• Market access to Vietnam’s growing digital economy

The law’s implementation timeline gives businesses 18 months to prepare for compliance requirements, ensuring a smooth transition to the new regulatory environment.

Conclusion

Vietnam’s Digital Technology Industry Law marks a significant milestone in global cryptocurrency regulation. By becoming the first nation to enact dedicated digital technology legislation, Vietnam demonstrates progressive leadership in blockchain adoption while maintaining necessary oversight.

This regulatory clarity, combined with government incentives for technology development, positions Vietnam as an emerging leader in the global digital economy. The law’s effectiveness will likely influence similar legislation across Southeast Asia and beyond.