Vietnam Legalizes Crypto Assets Under New Digital Tech Law

Vietnam’s National Assembly has officially passed the Law on Digital Technology Industry, establishing the country’s first comprehensive legal framework for digital assets, including cryptocurrencies. Slated to take effect in 2026, the law marks a pivotal step in Vietnam’s digital transformation strategy and signals the government’s intent to align with international financial compliance standards.

A Two-Tier Classification for Digital Assets

The legislation introduces a clear distinction between “virtual assets” and “crypto assets”:

• Crypto assets refer to digital tokens secured by encryption technology, used for storing and transferring value.
• Virtual assets cover broader digital representations used for exchange or investment but not necessarily tied to cryptographic validation.

Securities and fiat currencies are explicitly excluded from these definitions.

Toward Global Compliance and FATF Removal

One of the law’s most strategic objectives is to support Vietnam’s removal from the Financial Action Task Force (FATF) gray list, where it has been placed since 2023. That designation has subjected Vietnamese financial institutions to increased scrutiny and regulatory friction, especially in international transactions.

The new legal framework adheres to anti-money laundering (AML) and counter-terrorism financing standards. It requires companies working with digital assets to implement strong cybersecurity protocols to combat fraud, identity theft, and illicit finance.

Legal Clarity After Years of Ambiguity

Until now, Vietnam’s crypto ecosystem operated in a regulatory gray area. The new law ends that uncertainty, offering legal recognition for crypto assets and setting the foundation for business licensing, taxation, and investment conditions in the digital sector.

A government spokesperson stated the law was crafted to “protect users, promote transparency, and create a legal foundation for a responsible digital economy.”

National Blockchain and Identity Infrastructure

The Ministry of Public Security is backing the shift through NDAChain, a state-run permissioned blockchain built using Proof-of-Authority (PoA). It integrates Zero-Knowledge Proof (ZKP) technology to ensure privacy in identity verification.