Main Points:
- Vietnam’s National Assembly approved the Law on Digital Technology Industry on June 14, 2025, formally legalizing cryptocurrencies and virtual assets in a comprehensive legal framework.
- The law classifies digital assets into two categories—“virtual assets” for exchange or investment, and “crypto assets” using cryptographic techniques—explicitly excluding securities and fiat currencies.
- Mandatory anti-money laundering (AML) and countering the financing of terrorism (CFT) measures aim to address Vietnam’s placement on the FATF gray list since 2023 and strengthen cybersecurity protocols.
- Detailed business conditions, classifications, oversight mechanisms, and implementation guidelines will be issued by government agencies ahead of the law’s effective date on January 1, 2026.
- The legislation forms part of a broader digital technology strategy promoting artificial intelligence, semiconductors, data centers, and workforce development through incentives and sandbox programs.
- Vietnam’s move is expected to catalyze regional regulatory harmonization, influencing policy shifts in Singapore, Hong Kong, and beyond.
- A clear legal framework creates new opportunities for enterprises, SMEs, and investors seeking innovative blockchain applications, revenue streams, and cross-border partnerships.
Legislative Breakthrough: Vietnam Legalizes Crypto Assets
On June 14, 2025, Vietnam’s National Assembly achieved a landmark victory for digital innovation by passing the Law on Digital Technology Industry, marking the first time cryptocurrencies and related digital assets are explicitly recognized under Vietnamese law. This sweeping legislation establishes a clear legal foundation for the issuance, trading, and management of digital assets, replacing years of regulatory ambiguity with a structured, enforceable framework. By formally legitimizing crypto assets, Vietnam signals its commitment to harnessing blockchain technologies for economic growth and positions itself as a rising digital hub in the Asia-Pacific region.
Unlike prior regulations that merely tolerated crypto activities or applied piecemeal rules, this law provides a single, cohesive statute governing all aspects of the digital technology industry. Government bodies, led by the Ministry of Science and Technology, now possess a mandated responsibility to develop detailed implementing regulations, guidelines, and oversight mechanisms before the law takes effect on January 1, 2026, allowing businesses and regulators a transition period to ensure compliance and operational readiness.
Categorizing the Future: Defining Virtual Assets and Crypto Assets
A core innovation of the new law is its two-tier classification system, which distinguishes between “virtual assets” and “crypto assets.” Virtual assets cover digital representations used for exchange or investment—explicitly excluding securities, tokens backed by fiat, and other regulated instruments—thus encompassing stablecoins and utility tokens. On the other hand, crypto assets are defined as digital assets that utilize encryption or comparable digital technologies for the creation, issuance, storage, and transfer processes. This clear bifurcation prevents legal overlap with existing financial products and provides regulatory clarity to issuers and market participants.
By excluding traditional securities and fiat currencies from both categories, the legislation ensures that existing financial instruments remain subject to established banking, securities, and payment system laws, while innovative token models can be governed under the new digital technology regime. This approach addresses previous uncertainties faced by token issuers, enabling them to design new asset classes with confidence in their legal status. Clear definitions also facilitate tax treatment, licensing requirements, and the development of custody and trading solutions tailored to each asset class.
Ensuring Integrity: AML/CFT and Cybersecurity Mandates
Vietnam’s inclusion on the Financial Action Task Force’s “gray list” since 2023 underscores international concerns over gaps in the country’s anti-money laundering (AML) and countering the financing of terrorism (CFT) regulations for digital assets. To rectify these issues, the new law imposes rigorous AML/CFT obligations on digital asset service providers, requiring them to implement customer due diligence, transaction monitoring, and suspicious activity reporting consistent with global best practices.
Moreover, the legislation mandates that regulatory authorities define and enforce cybersecurity standards to prevent hacking incidents, data breaches, and other technical risks that could undermine market stability. By integrating AML/CFT and cybersecurity safeguards into the core of the legal framework, Vietnam aims to bolster its international standing, secure removal from the FATF gray list, and attract reputable global investors and service providers. These measures also lay the groundwork for interoperability with cross-border compliance systems and enhance trust in local platforms.
Strategic Vision: Fostering AI, Semiconductors, and a Digital Hub
Beyond crypto-specific rules, the Digital Technology Industry Law serves as a comprehensive blueprint for nurturing Vietnam’s broader digital economy. It includes incentives—such as tax breaks, land-use benefits, and funding grants—for companies engaged in artificial intelligence research, semiconductor manufacturing, data center construction, and advanced software development. The law also encourages controlled technology experimentation through sandbox environments, enabling innovators to pilot projects in a supervised setting before scaling commercially.
Local governments are required to launch workforce development programs to cultivate high-quality talent in emerging tech fields, ensuring that Vietnam’s labor pool meets the demands of next-generation industries. Educational initiatives aim to integrate coding, machine learning, and blockchain concepts into curricula, while subsidies support vocational training for professionals transitioning into tech roles. As a result, Vietnam positions itself not only as a user of digital technologies but as a creator and exporter of cutting-edge solutions.
Vietnam’s strategic vision aligns with national goals to become Asia’s next technology hub, as articulated by key lawmakers. Le Quan Phui, Chair of the National Assembly’s Science, Technology, and Environment Committee, emphasized that the law will play a pivotal role in developing the country’s semiconductor sector and integrating Vietnam into global supply chains. By coupling crypto legalization with broader digital infrastructure investments, Vietnam seeks to attract foreign direct investment, foster domestic entrepreneurship, and accelerate its digital transformation.
Regional Ripple Effect: Asia-Pacific Regulatory Landscape
Vietnam’s bold move is reshaping the Asia-Pacific regulatory landscape, prompting neighboring jurisdictions to refine their own digital asset policies. In Singapore, the Monetary Authority of Singapore (MAS) has tightened rules for digital token service providers (DTSPs), mandating that any DTSP operating from Singapore and serving overseas clients must cease unlicensed activities by June 30, 2025, or obtain a license under the Financial Services and Markets Act 2022. This clampdown targets firms exploiting Singapore’s infrastructure to evade stricter regulations elsewhere, signaling a coordinated regional effort to close compliance gaps.
Meanwhile, Hong Kong’s Legislative Council passed the Stablecoins Bill on May 21, 2025, creating a licensing framework for fiat-referenced stablecoin issuers that will take effect on August 1, 2025 . The new regime stipulates rigorous reserve management, redemption protocols, and risk controls for stablecoin providers, aiming to safeguard investors and reinforce Hong Kong’s standing as a global virtual asset hub. Major financial institutions, including Ant Group’s affiliate Ant International, have already announced intentions to apply for stablecoin licenses, underscoring market confidence in the new rules.
In addition, other Southeast Asian nations are advancing crypto regulation: Thailand’s Digital Asset Development Agency is expanding its regulatory sandbox, and Malaysia’s Securities Commission continues to refine licensing criteria for virtual asset service providers. This wave of legislative activity reflects an emerging consensus across Asia-Pacific that balanced, transparent regulation can foster innovation while protecting consumers and financial integrity.
Market Implications: Opportunities for New Crypto Projects and Investors
The introduction of Vietnam’s Digital Technology Industry Law unlocks a host of opportunities for enterprises, SMEs, and investors seeking to leverage blockchain and digital asset technologies. With legal certainty, businesses can launch tokenized lending platforms, decentralized finance (DeFi) protocols, and asset-tokenization services targeting real estate, commodities, and intellectual property rights. Clear regulatory guidelines reduce compliance costs and encourage the entry of global players, potentially leading to deeper liquidity pools and more sophisticated financial products.
For investors, the law’s enactment paves the way for regulated crypto exchanges, custodial wallets, and institutional-grade marketplaces. Enhanced AML/CFT standards and cybersecurity requirements foster a more secure trading environment, while government incentives lower barriers to entry for startups developing next-generation applications. Additionally, Vietnam’s anticipated removal from the FATF gray list will facilitate smoother cross-border transactions, increasing access to international capital markets and partnerships.
Blockchain use cases in supply chain management, digital identity, and public sector services are also poised for growth. Government-backed pilot projects could integrate distributed ledger technology into land registries, voting systems, and health record management, driving efficiency and transparency. As Vietnam continues to invest in AI and semiconductor infrastructure, blockchain platforms capable of supporting data-intensive applications will find fertile ground in the country’s evolving tech ecosystem.
Conclusion: Vietnam’s Digital Leap and the Road Ahead
Vietnam’s legalization of cryptocurrencies through the Law on Digital Technology Industry represents a watershed moment in Southeast Asia’s digital evolution. By crafting a balanced regulatory framework that recognizes the unique characteristics of virtual assets and crypto assets, enforces strong AML/CFT and cybersecurity standards, and incentivizes wider digital innovation, Vietnam is charting a course toward becoming a leading technology hub in Asia. The law’s implementation will require careful coordination among government agencies, industry stakeholders, and international partners, but the potential rewards are substantial: enhanced economic growth, diversified revenue streams, and a more dynamic startup ecosystem.
As neighboring jurisdictions refine their own policies, Vietnam’s proactive approach underscores the importance of regional cooperation to establish interoperable standards and promote responsible blockchain development. For investors and entrepreneurs, this is an opportune moment to engage with Vietnam’s burgeoning digital market, whether through launching new crypto ventures, partnering on pilot programs, or exploring tokenization projects across traditional industries. With a clear legal foundation and a forward-looking vision, Vietnam is poised to lead the next wave of digital asset innovation in the Asia-Pacific and beyond.
