Vietnam has made a significant step in the world of cryptocurrency by officially exiting the crypto “grey zone.” On June 14, the National Assembly passed the Law on Digital Technology Industry, a comprehensive legislative package that brings digital assets into the regulatory fold for the first time in one of the most active crypto markets globally.
This groundbreaking law, set to take effect on January 1, 2026, marks the end of years of uncertainty and establishes a framework that includes licensing requirements for exchanges, anti-money laundering (AML) measures, and tax regulations specifically tailored to digital assets. Vietnam is now poised to become Southeast Asia’s latest and potentially largest regulated crypto market.
The new law categorizes digital assets into two distinct classes: “crypto assets” and “virtual assets.” This differentiation aims to strike a balance between fostering innovation and maintaining control. Crypto assets, which encompass tokens with financial functionalities, will be subject to licensing, capital requirements, and know-your-customer (KYC) rules. On the other hand, virtual assets, such as in-game tokens or loyalty points, will be subject to less stringent regulations.
Under this new framework, exchanges will likely be required to obtain licenses, maintain minimum capital levels, and have local offices. Unlicensed operators may face fines, with additional regulations on taxation, enforcement, and technical compliance expected to be introduced through sub-decrees.
The regulatory push in Vietnam follows pressure from the Financial Action Task Force (FATF), which placed the country on its “grey list” in 2023 due to deficiencies in anti-money laundering and counter-terrorism financing enforcement. By aligning its crypto legislation with FATF standards, Vietnam aims to expedite its removal from the list, which will facilitate cross-border capital flows and support the country’s burgeoning fintech ecosystem.
Vietnam currently ranks fifth globally in terms of crypto adoption, with an estimated 17 million holders and holdings totaling around $100 billion. The lack of clear regulations has hindered institutional interest and stifled domestic innovation. With the introduction of the new law, local developers will have legal protections, foreign exchanges can apply for licenses, and venture capital firms can invest with confidence in the regulatory environment.
The implementation timeline leading up to January 2026 allows stakeholders to prepare for the anticipated surge in legal entity registrations and hiring by the fourth quarter of the year. Additionally, the law offers incentives such as research and development tax incentives, blockchain pilot sandboxes, and subsidies for skilled tech labor, signaling Vietnam’s broader ambitions to grow its digital economy.
Vietnam’s entry into the regulated crypto space could position the country as a regional hub alongside Singapore and Thailand, especially as other ASEAN nations lag behind. With a young, tech-savvy population and a robust developer community, Vietnam’s embrace of regulated crypto could reshape the region’s Web3 landscape.
While the new law sets a strong foundation, key details regarding tax implications, custody procedures, and the treatment of decentralized finance (DeFi) platforms and stablecoins remain to be clarified in subsequent sub-decrees. As financial authorities work to enhance their expertise and enforcement capabilities, the overarching message from Hanoi is clear: regulation, not restriction, is the way forward.
The timeline leading up to the passing of the law highlights Vietnam’s commitment to establishing a regulated and sustainable crypto industry that can serve as a cornerstone of its digital economy and attract global investment.