A historic leap from regulatory grey zone to innovation hub
In a decisive move that transforms Vietnam from a crypto regulatory grey zone to a potential regional blockchain powerhouse, the National Assembly passed the Law on Digital Technology Industry with overwhelming support on June 14, 2025. This landmark legislation represents far more than simple crypto recognition—it's a comprehensive blueprint for Vietnam's digital future that interweaves cryptocurrency regulation with ambitious plans for AI development and semiconductor manufacturing.
The law's passage marks the culmination of years of regulatory uncertainty that saw Vietnam simultaneously rank among the world's top crypto adoption countries while operating without clear legal frameworks. With an estimated 17 million crypto holders and holdings valued at approximately $100 billion, Vietnam's crypto community has long awaited this regulatory clarity.
"With this move, Viet Nam has become the first country in the world to enact a standalone law specifically dedicated to digital technology industry."
— Vietnam Government Portal (VGP) Official Statement
Decoding the two-tier digital asset classification
The legislation introduces a sophisticated two-tier classification system that clearly distinguishes between different types of digital assets, providing legal certainty while maintaining flexibility for innovation:
Digital asset categories:
- Virtual Assets: Digital properties used for exchange or investment, excluding digital fiat currencies, securities, or traditional financial instruments. This category encompasses non-financial tokens, loyalty points, and gaming assets.
- Crypto Assets: Digital assets that utilize encryption or similar digital technologies for validation during creation, issuance, storage, and transfer. This includes major cryptocurrencies like Bitcoin and Ethereum, as well as potentially NFTs.
Crucially, the law explicitly excludes securities, central bank digital currencies (CBDCs), and other traditional financial instruments from these definitions, creating a clear regulatory boundary that prevents overlap with existing financial regulations.
Implementation timeline:
- March 1, 2025: Prime Minister Pham Minh Chinh directs crypto framework finalization
- May 9, 2025: National Assembly begins final debate
- June 14, 2025: Law passes with 441-4 vote
- January 1, 2026: Law enters into force
- Q2 2026: Detailed regulations expected for crypto service providers
Breaking free from the FATF grey list
Vietnam's inclusion on the Financial Action Task Force (FATF) grey list since June 2023 has cast a shadow over its financial sector, creating barriers to international business and investment. The new law directly addresses FATF's concerns through comprehensive Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT) provisions.
The legislation mandates strict compliance with international AML/CFT standards, including robust Know Your Customer (KYC) procedures, suspicious transaction reporting, and measures to prevent the use of digital assets for weapons proliferation financing. These provisions align Vietnam with global best practices and signal the country's commitment to financial integrity.
Industry experts view this as a strategic move to expedite Vietnam's removal from the grey list. The law requires crypto exchanges to be licensed, maintain minimum capital requirements, establish local offices, and implement comprehensive compliance programs—all key elements that FATF evaluates when assessing a country's AML/CFT regime.
Beyond crypto: Unprecedented incentives for digital innovation
While cryptocurrency legalization captures headlines, the law's most transformative aspects may lie in its sweeping incentives for digital technology development. Vietnam has set an ambitious target of establishing 150,000 digital technology enterprises by 2035, backed by what industry analysts are calling the most generous tech incentive package in Southeast Asia.
Key incentive structures:
- Corporate tax rates as low as 10% for up to 15 years for qualifying tech companies
- Import duty exemptions for equipment and materials used in digital technology projects
- Land rental fee waivers for strategic technology developments
- Special incentives for large-scale projects:
- Projects investing over $80 million in data centers
- Semiconductor facilities with investments exceeding $160 million
- Five-year personal income tax exemption for foreign experts
- R&D subsidies particularly targeting chip design and AI data centers
- Blockchain pilot sandboxes for controlled experimentation
"The newly passed law clearly outlines Vietnam's strategic goal to develop a comprehensive semiconductor industry and gradually become an essential link in the global supply chain."
— Le Quang Huy, Chairman of the National Assembly's Committee on Science, Technology and Environment
Learning from past mistakes: The scam prevention imperative
The urgency behind Vietnam's crypto regulation stems partly from a series of high-profile scams that highlighted the risks of operating in a regulatory vacuum. Recent cases underscore why consumer protection measures feature prominently in the new law:
Major crypto scams that shaped the legislation:
- MTC (Matrix Chain) scandal: Defrauded tens of thousands of investors of nearly 10 trillion Vietnamese dong (~$400 million)
- BitMiner fraud (February 2025): Four arrested for operating fake Dubai-based mining platform that stole over 4 billion VND ($157,300) from 200+ victims
- Million Smiles scheme (December 2024): Scammed 30 billion VND ($1.17 million) from 400 individuals and 100 businesses using spiritual claims and fake "ancestral treasures" to promote QFS token
The new law introduces strict consumer protection measures including transparent disclosure requirements, secure custody practices, and clear dispute resolution processes. These safeguards aim to restore public trust while creating a framework that legitimate businesses can operate within confidently.
Building tomorrow's digital workforce
Recognizing that technological advancement requires human capital, the law mandates comprehensive workforce development initiatives. Provincial governments must implement training programs and provide subsidies for high-skilled personnel in digital technology sectors.
The legislation calls for integration of digital technology skills into national curricula from primary education levels, ensuring future generations are equipped for the digital economy. Universities and vocational schools will receive funding to develop specialized programs in blockchain technology, AI development, and semiconductor engineering.
Companies hiring high-quality personnel for strategic technology projects can access government subsidies, while foreign experts working in priority sectors enjoy personal income tax exemptions for up to five years—a significant incentive to attract global talent.
Positioning Vietnam as Southeast Asia's crypto capital
Vietnam's comprehensive approach to crypto regulation could set a precedent for the region. While Singapore and Thailand have implemented crypto-friendly policies, Vietnam's dedicated standalone legislation represents an unprecedented level of governmental commitment to the digital asset sector.
The law positions Vietnam to potentially become Southeast Asia's largest regulated crypto market. With clear rules in place, the brain drain that saw many Vietnamese blockchain startups relocate to Singapore may reverse. Local developers gain legal protection, foreign exchanges can apply for licenses, and venture capital firms gain confidence that exits won't be trapped in regulatory dead ends.
Competitive advantages:
- First-mover advantage: First country with standalone digital technology law
- Large existing user base: 17 million crypto holders ready to engage legally
- Strategic location: Gateway between Chinese and Southeast Asian markets
- Government commitment: Clear political will at highest levels
- Comprehensive incentives: Unmatched support for tech ecosystem development
The road ahead: Challenges and opportunities
While the law represents a monumental step forward, implementation challenges remain. The 18-month runway until January 2026 provides time for businesses to prepare, but also creates a period of uncertainty as detailed regulations are developed.
Key considerations for market participants:
- Licensing requirements: Exchanges and service providers must prepare for compliance
- Tax implications: Detailed tax rules for crypto transactions await clarification
- International coordination: Integration with global crypto ecosystem
- Technology infrastructure: Building capacity for regulated operations
- Talent acquisition: Competition for skilled blockchain developers
The Ministry of Finance and State Bank of Vietnam are expected to release detailed implementation guidelines by Q2 2026, covering licensing procedures, capital requirements, and operational standards. This phased approach allows for stakeholder consultation while maintaining momentum toward the January 2026 implementation date.