Cryptocurrencies Gain Official Recognition in Vietnam's New Digital Asset Law, Marking a Significant Regulatory Transition
Vietnam Introduces Comprehensive Digital Asset Law
Vietnam has passed a new digital asset law, officially recognizing digital assets under national legislation. The legislation, embedded within the 2025 Law on Digital Technology Industry (DTI Law), introduces a comprehensive regulatory framework for virtual assets, crypto assets, and other digital forms.
The new law aims to strengthen the country's legal framework and bring it in line with international standards, addressing concerns raised by the Financial Action Task Force (FATF) regarding anti-money laundering efforts.
Crypto assets are digital assets that use encryption technology to verify transactions and establish ownership. They are distinct from securities, fiat-backed digital currencies, and other financial instruments already regulated under Vietnam's existing legal frameworks.
The law empowers regulators, including the Ministry of Finance (MOF) and the State Bank of Vietnam, to issue detailed conditions on anti-money laundering (AML), cybersecurity standards, and consumer protection protocols specific to crypto activities. This includes establishing AML and Know Your Customer (KYC) requirements aligned with international standards such as the FATF guidelines, addressing previous AML deficiencies linked to unregulated crypto activity.
A regulatory sandbox mechanism has been introduced to pilot crypto asset trading and related services. Licensed enterprises will be allowed to operate digital asset trading platforms, custody services, token issuance, and proprietary trading under government supervision. This pilot program is scheduled to run until the end of 2027 to enable testing and risk management before full-scale regulation.
The DTI Law tasks the government with comprehensive oversight on transfer, ownership, and business activities involving digital assets, integrating cybersecurity requirements and aiming for coherent alignment within Vietnam’s broader science, technology, and innovation legal ecosystem.
The law includes clauses explicitly combating money laundering and terrorism financing via digital assets, embodying international best practices, and facilitating consumer protections to enhance trust in crypto markets. Alongside regulation, the law introduces incentives like tax breaks, R&D subsidies, visa facilitation, and investment incentives to encourage blockchain and digital asset firms, promoting development and legal compliance within the crypto space.
These regulations will take effect from January 1, 2026, providing legal certainty for the growing community of over 17 million digital currency users in Vietnam. Supporting cybersecurity regulations are concurrently being updated with a consolidated 2025 Cybersecurity Law, centralizing authority under the Ministry of Public Security to enhance enforcement and align with the new digital asset regulatory framework.
In summary, Vietnam’s new digital asset law delivers a structured, government-supervised ecosystem for virtual and crypto assets, emphasizing classification, AML/cybersecurity standards, regulatory sandbox pilots for trading and custody, and investment incentives to foster a compliant and innovative digital economy. The law is a significant step in Vietnam's evolving approach to digital finance, signaling growing recognition of the sector's role in the country's broader economic and technological strategy.
- The Ministry of Finance (MOF) and the State Bank of Vietnam, empowered by the new digital asset law, will issue detailed conditions on anti-money laundering (AML), cybersecurity standards, and consumer protection protocols specific to crypto activities.
- The regulatory sandbox mechanism in the new law allows licensed enterprises to operate digital asset trading platforms, custody services, token issuance, and proprietary trading under government supervision, until the end of 2027.
- Vietnam's digital asset law includes clauses facilitating consumer protections, combating money laundering and terrorism financing, and offering investment incentives like tax breaks, R&D subsidies, visa facilitation, and investment incentives to encourage blockchain and digital asset firms.
