Vietnam Legalizes Digital Assets Under New National Law

Vietnam has formally legalized digital assets, following the approval of the Law on Digital Technology Industry by its National Assembly. The move aims to provide clear legal direction on handling crypto assets. This will, in turn, position Vietnam as a key digital hub in the region and address global concerns about regulatory gaps.

Clear Definitions for Digital and Crypto Assets

It is worth noting that the new law defines digital assets using clear categories. Digital assets are split into virtual assets and crypto assets. Virtual assets refer to those used for exchange or investment. However, securities, fiat currency representations, or financial instruments covered under civil and financial laws should be excluded. 

Conversely, crypto assets are digital assets that rely on encryption to confirm ownership and transactions. They do not include digital versions of currency or other regulated financial tools.

The government is now responsible for setting rules guiding how these digital assets are classified, traded, and managed. These rules include specific business conditions and oversight measures that will align with international standards. 

Vietnam’s regulators are also required to implement systems that protect against cybersecurity threats, money laundering, terrorism financing, and illegal weapons funding. This update comes a few months after Vietnam’s Ministry of Finance announced that it is working on a plan to test a legal local crypto exchange in partnership with Bybit.

Boosting Innovation and the Digital Technology Sector

Aside from regulating digital assets, the law focuses heavily on the growth of Vietnam’s digital technology sector. It introduces a range of incentives to support digital enterprises, promote innovation, and develop technical infrastructure. 

Furthermore, this includes state-backed support for startups, subsidies for hiring skilled personnel, and talent development programs in fields like artificial intelligence and semiconductors.

Local governments are expected to assist in building a strong workforce, particularly for key digital projects. Training, retraining, and certification will be encouraged per global benchmarks.

Crypto Assets Framework Tied to International Monitoring Goals

This new framework is also expected to improve Vietnam’s standing on the global stage. Since 2023, Vietnam has been on the Financial Action Task Force (FATF) gray list due to unclear virtual asset rules. 

It is essential to state that by passing this law, Vietnam takes a major step toward meeting FATF’s recommendations, which may lead to the country being removed from the list. The law will come into force on January 1, 2026, laying a strong legal and economic foundation for Vietnam’s digital future. 

Meanwhile, in 2024, the Government of Vietnam took a significant step in becoming a regional leader in blockchain technology. The country’s Deputy Prime Minister, Minister Ho Duc Phoc, signed and issued the National Blockchain Strategy into the national framework.

 

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