Vietnam has taken an official step towards legitimizing and regulating its digital financial system with the passage of the Legislation on Digital Expertise Trade—its first complete authorized framework recognizing crypto belongings.
The laws not solely distinguishes between digital and crypto belongings but additionally aligns the nation with international anti-money laundering requirements, doubtlessly paving the way in which for removing from the Monetary Motion Activity Drive’s (FATF) grey checklist.
Vietnam’s presence on the FATF grey checklist since 2023 has created compliance challenges for native monetary establishments and elevated scrutiny of cross-border transactions.
Vietnam establishes a two-tier classification system
The Nationwide Meeting authorised the so-called “Law on Digital Technology Industry” on Saturday, June 14.
Slated for implementation in 2026, the regulation marks a broader push to spur innovation in rising applied sciences like synthetic intelligence and semiconductors, whereas setting clearer guidelines for the crypto sector after years of regulatory limbo.
In accordance with The Investor Vafie Journal, “the law defines crypto assets as digital assets that use encryption or similar digital technologies for validation during creation, issuance, storage, or transfer.”
The laws establishes clear distinctions between completely different classes of digital belongings and in addition excludes securities and fiat currencies from the crypto asset definition.
The brand new regulation creates separate classes for digital belongings and crypto belongings. Digital belongings are thought-about as digital belongings used for trade or funding. On the similar time, cryptocurrencies use encryption know-how to validate transactions and in addition possession.
The federal government retains the authority to develop detailed classifications, enterprise circumstances, and administration protocols for digital belongings. In compliance with international finest practices, regulatory our bodies should implement cybersecurity measures to cease the proliferation of weapons, cash laundering, and terrorism financing.
The FATF has particularly really helpful establishing clear digital asset rules as a part of anti-money laundering compliance efforts.
Implementation begins Jan. 1, 2026 and gives a transition interval for companies and regulators to arrange operational frameworks. The Ministry of Science and Expertise drafted the laws as a part of broader digital know-how sector growth initiatives.
Past cryptocurrency regulation, the regulation establishes intensive incentives for digital know-how enterprises and innovation packages. Particular insurance policies encourage managed know-how experimentation and shared digital infrastructure growth throughout a number of sectors.
Native governments should implement human useful resource growth insurance policies for digital know-how industries, notably for key initiatives involving semiconductors, synthetic intelligence techniques, and digital know-how merchandise. Subsidies will help hiring high-quality personnel and workforce coaching packages.
The laws additionally prioritizes software program manufacturing and AI information facilities for funding, tax, and land-use incentives. These sectors obtain formal recognition as strategic priorities beneath Vietnamese regulation.