National Assembly Approves Comprehensive Digital Asset Regulation
Vietnam has taken a decisive step into the digital future with the official passage of the Law on Digital Technology Industry, a landmark piece of legislation that formally recognizes and regulates cryptocurrencies and digital assets. Approved by the National Assembly on June 14, 2025, this law will come into effect on January 1, 2026, establishing Vietnam’s first comprehensive legal framework for digital assets and positioning the country as a regional leader in blockchain innovation and digital finance.
Key Features of the New Law
- Formal Legal Recognition: Cryptocurrencies and digital assets now have formal legal status in Vietnam, ending years of regulatory ambiguity and providing clarity for investors, businesses, and consumers.
- Asset Classification: The law divides digital assets into two main categories:
- Virtual Assets: Digital assets used primarily for exchange or investment purposes.
- Crypto Assets: Assets that utilize encryption technologies for validation, creation, and transfer.
- Notably, the law specifically excludes securities, stablecoins, and digital representations of fiat currency from these categories, focusing on blockchain-based innovations.
- Regulatory Oversight: The government is tasked with developing detailed regulations for business operations, licensing, and compliance, ensuring that digital asset activities align with anti-money laundering (AML) and cybersecurity standards in accordance with international best practices.
- Currency Substitution Controls: The framework addresses concerns over currency substitution, preventing overlap with traditional financial instruments and supporting financial stability.
Incentives for Tech and Innovation
- Tax and Land-Use Breaks: The law introduces tax exemptions, land-use incentives, and R&D support for companies operating in digital assets, blockchain, AI, and semiconductor sectors.
- Workforce Development: Local governments are mandated to implement workforce training programs, integrating digital technology skills into education and supporting the growth of a skilled talent pool in cryptocurrency and digital asset fields.
- Innovation Support: The legislation encourages controlled technology experimentation and the development of shared digital infrastructure, with a focus on fostering startups and attracting international investment.
Security, Compliance, and Global Alignment
- Cybersecurity and AML: All digital asset operations must implement robust cybersecurity measures and comply with anti-money laundering and counter-terrorism financing protocols, aiming to bring Vietnam in line with Financial Action Task Force (FATF) recommendations and potentially remove the country from the FATF “gray list”.
- Consumer Protection: The law strengthens consumer rights in cryptocurrency transactions and seeks to promote transparency and trust in the digital economy.
Strategic Vision
Le Quang Huy, Chairman of the National Assembly’s Committee on Science, Technology, and Environment, emphasized that the new law is part of Vietnam’s broader strategy to develop a world-class semiconductor industry and become an integral part of the global technology supply chain.
Regional Impact
By enacting this pioneering legislation, Vietnam joins the ranks of countries like Japan and the European Union that have implemented dedicated crypto regulations, setting a new standard for digital asset governance in Southeast Asia. The move is expected to boost institutional investment, foster innovation, and enhance Vietnam’s standing in the global digital economy.
