Key Takeaways
- The new law incorporates cybersecurity provisions and AML/CTF mechanisms designed to meet FATF recommendations
- The law puts “virtual assets” and “crypto assets” as categories of digital assets, separating them from traditional financial instruments
Vietnam has taken a decisive step into the digital age by passing a comprehensive Law on Digital Technology, which formally acknowledges Bitcoin and other crypto as legitimate digital assets. This landmark legislation, approved by the National Assembly, will come into force on January 1, 2026, laying the foundation for an expansive digital economy backed by clearer regulatory structures.
For the first time, Vietnam’s legal code distinctly defines “virtual assets” and “crypto assets” as categories of digital assets, separating them from traditional financial instruments. These terms, however, avoid framing crypto as securities, digital currencies, or fiat equivalents. Instead, the law offers a novel taxonomy reflecting the country’s ambition to create its digital regulatory identity while aligning with global norms.
The passage of the law is also seen as a calculated move to address Vietnam’s placement on the Financial Action Task Force (FATF) “grey list” in 2023. That designation flagged shortcomings in Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) enforcement, leading to hesitations among foreign investors and constraints on cross-border capital flows. The new law incorporates cybersecurity provisions and AML/CTF mechanisms designed to meet FATF recommendations , signalling the country’s intent to be removed from the list
Vietnam currently ranks fifth globally in crypto adoption, with industry data estimating around 17 million holders and total digital asset holdings valued near $100 billion. However, up until now, the lack of legal clarity had been a major deterrent for institutional players and hindered innovation among domestic startups.
The law’s implications stretch beyond crypto. It features a sweeping incentive framework for emerging technologies, including artificial intelligence (AI), semiconductors, and digital infrastructure. Firms working in areas such as chip design, AI data center development, and blockchain will gain access to tax exemptions, land-use support, and R&D subsidies. These incentives indicate Vietnam’s broader strategy to position itself as a regional technology hub with a digital-first economy.
