Vietnam has taken a major leap into the digital future by officially recognising and regulating crypto assets under its newly passed Law on Digital Technology Industry. Approved by the National Assembly on June 14, 2025, this is Vietnam’s first comprehensive law that brings digital assets into the legal fold.

Slated to come into effect from January 1, 2026, the law not only gives legitimacy to crypto but also lays out the groundwork for a broader digital economy. It covers everything from innovation in AI and semiconductors to incentives for software production and digital infrastructure. Most importantly for crypto enthusiasts and businesses, it finally ends years of uncertainty and regulatory limbo.

Crypto vs. Virtual Assets

One of the biggest highlights of the law is the clear classification system it introduces for digital assets. Vietnam now recognises two separate categories:

• Virtual Assets: These are digital assets used mainly for investment or exchange purposes.
• Crypto Assets: These are digital assets that use encryption or similar digital technology to validate their creation, ownership, storage, and transfer.

This classification helps distinguish crypto from other forms of digital value like loyalty points or in-game currencies, which may not use blockchain or encryption technology. Additionally, the law clearly states that securities and fiat currencies are not included in the definition of crypto assets.

The Vietnamese government will retain the power to further define and regulate each category. This includes setting up rules on how businesses can operate, how exchanges are licensed, and how assets are stored and secured.

Aligning with Global Standards: FATF and AML Compliance

Another significant aim of the law is to bring Vietnam in line with international anti-money laundering (AML) standards. Since 2023, Vietnam has been on the Financial Action Task Force (FATF) gray list, which signals to global institutions that the country has deficiencies in AML and counter-terrorism financing (CTF) practices.

Being on this list has created obstacles for Vietnamese banks and businesses involved in international transactions. To address this, the new law includes strong provisions to combat illicit finance. These include:

• Implementing cybersecurity and AML measures for all crypto-related businesses
• Creating strict reporting and monitoring frameworks for suspicious transactions
• Establishing clear business conditions and oversight for digital asset platforms

By aligning with FATF’s recommendations, Vietnam hopes to be removed from the gray list, improving its global reputation and making it easier for local businesses to access international capital.

A Broader Push for Digital Innovation

While crypto is a major focus, the Law on Digital Technology Industry is part of a much wider strategy to build Vietnam’s digital future. The law encourages development in key sectors like:

• Semiconductors
• Artificial Intelligence (AI)
• Software and Data Centres

To support this, the government will roll out investment, tax, and land-use incentives for companies in these sectors. Special attention will be given to projects that advance AI and data infrastructure, which are now officially recognised as strategic priorities under Vietnamese law.

The law also encourages controlled experimentation with new technologies, such as regulatory sandboxes. These allow startups to test innovative services in a supervised environment without facing full regulatory hurdles from day one.

Skilling the Workforce for a Digital Economy

A future-ready digital economy needs a skilled workforce, and Vietnam’s new law recognises this. Local governments are now required to support training programmes and offer subsidies for hiring high-quality professionals in digital sectors. This includes:

• Developing AI and semiconductor talent pipelines
• Promoting digital skills education in universities and tech institutions
• Creating public-private partnerships to boost human resource development

These policies are designed to ensure that Vietnam is not just a consumer of global tech but also a creator, building local capacity in next-gen technologies.

Vietnam’s Law on Digital Technology Industry marks a defining moment in its digital journey. By providing clear legal recognition for crypto assets, aligning with global compliance standards, and supporting broader digital innovation, Vietnam is positioning itself as a serious player in the global tech arena.