Vietnam has taken a giant step toward the blockchain world by passing a comprehensive law that officially recognizes cryptocurrencies and artificial intelligence (AI). The “Digital Technology Industry Law,” which was passed by the Vietnamese National Assembly on June 14, 2025, with the approval of 441 out of 445 delegates, will come into effect on January 1, 2026.
Cryptocurrencies are now officially recognized in Vietnam
Under the new law, blockchain-based cryptocurrencies such as Bitcoin and Ethereum are officially defined as “crypto assets.” Additionally, elements such as in-game items and loyalty points are classified as “virtual assets” under a separate category. Securities, central bank digital currencies (CBDCs), and traditional financial instruments are excluded from this regulation. Cryptocurrencies in Vietnam are now not only recognized as a technological innovation but also as a property right under civil law.
The law does not merely recognize cryptocurrencies officially. It also offers numerous incentives to support local startups and prevent brain drain. Under the new regulations, local technology startups will receive tax exemptions, government-backed grants, special visa programs, and various subsidies. The government aims to achieve 8% economic growth in the digital sector with these reforms.
This process, which began with Prime Minister Pham Minh Chinh's directive in March, has been transformed into a concrete bill through the joint efforts of the Ministry of Finance and the State Bank of Vietnam. The new regulation, similar to special cryptocurrency regulations implemented in regions such as the European Union and Dubai, offers a structure separate from traditional financial rules.
Vietnam was on the FATF's gray list
Vietnam has been on the Financial Action Task Force (FATF) gray list for a long time. The reason was weak cryptocurrency regulations and insufficient anti-money laundering measures. The new law directly addresses these concerns. The law clearly states AML (Anti-Money Laundering) and CFT (Counter Financing of Terrorism) standards. In addition, measures to prevent cryptocurrencies from being used for illegal purposes, particularly for arms procurement or terrorist financing, have been legally guaranteed.
With the law coming into effect in 2026, Vietnam will:
- Establish licensing processes for cryptocurrency service providers,
- Impose compliance requirements on financial institutions,
- Monitor compliance with AML, CFT, and cybersecurity standards.
All these developments could bring Vietnam into greater alignment with international cryptocurrency regulations. Additionally, these regulations aim to attract foreign investment and establish the country as a regional digital technology hub. Vietnam, which ranks 5th in Chainalysis' 2024 Cryptocurrency Adoption Index, has the potential to further strengthen its global ranking with this legal reform.
