In a rapidly evolving digital landscape, Vietnam has made a bold move by officially legalizing cryptocurrencies. On June 14, the National Assembly passed a groundbreaking Law on the Digital Technology Industry, which recognizes crypto assets as a legal category. This decision positions Vietnam not just as a participant but as a contender in the global tech revolution.
The law, effective from January 1, 2026, does more than simply endorse cryptocurrency; it establishes a robust framework that encompasses various digital technologies, including artificial intelligence (AI), semiconductors, and essential digital infrastructure. By adopting this comprehensive legislation, Vietnam is sending a clear message—it’s ready to be a serious player in the international tech arena.
A Two-Tiered Crypto Framework
Vietnam’s divergence from the regulatory paralysis seen in countries like the United States is evident in its structured approach. The new law categorizes digital assets into two main classes:
Virtual Assets: Typically consisting of non-financial tokens, loyalty points, or digital goods associated with gaming.
- Crypto Assets: This refers to assets built on cryptographic and distributed ledger technologies, such as Bitcoin, Ethereum, and potentially non-fungible tokens (NFTs).
This distinction is crucial as it differentiates these assets from securities, fiat-backed stablecoins, and central bank digital currencies (CBDCs), which remain outside this legal framework. The formal recognition of crypto assets marks a significant milestone for Vietnam, placing it among a select group of nations that embrace digital currencies as part of their financial fabric.
The government’s next steps involve refining the particulars: establishing licensing requirements, compliance protocols, consumer protections, and stringent Anti-Money Laundering (AML) standards. With Vietnam on the Financial Action Task Force’s (FATF) gray list since 2023, proactive measures are vital to improving its global standing.
More Than Just Crypto: A National Tech Playbook
While the legalization of cryptocurrency is noteworthy, it’s only a fraction of Vietnam’s comprehensive digital strategy. The law sets the stage for the country to emerge as a digital powerhouse in Southeast Asia.
Some key elements of this law include:
- Tax incentives for companies engaged in AI and semiconductor production.
- R&D subsidies aimed at enhancing chip design and establishing data centers.
- Infrastructure support for digital enterprises.
- Integration of digital skills into educational curricula from an early age.
- Regional workforce development initiatives funded by the government.
These initiatives indicate that Vietnam is not merely placing bets on the future of blockchain technology; it’s creating an extensive ecosystem that covers everything from hardware to software, education to entrepreneurial ventures.
In contrast to many developed nations still grappling with AI governance and cryptocurrency regulations, Vietnam is advancing. While others debate, Vietnam builds, showcasing its ambition to rise as a digital economy in its own right.
The Dark Side: Crypto Scams Still Rampant
Despite this positive transformation, the backdrop of rampant crypto fraud remains a concern. Recent reports reveal significant scams affecting numerous investors.
In February 2025, authorities dismantled a fake mining operation called BitMiner, which defrauded over 200 individuals out of approximately 4 billion VND (~$157,000).
- Another infamous fraud, “Million Smiles,” claimed approximately 30 billion VND (~$1.17 million) by promoting a fictitious token connected to dubious spiritual claims.
These alarming cases underline the urgent need for robust consumer protections and the AML provisions embedded in the new cryptocurrency legislation. Vietnam understands that to become a credible tech hub, it must eliminate the threat of scams and fraud.
The Bigger Picture: Tech Sovereignty & Soft Power
This legislative shift signifies more than a path to economic growth; it embodies a striving for digital sovereignty. In an era characterized by escalating U.S.-China technological tensions, Vietnam is making it clear that it aims to carve out its own niche.
This legislation stands as a pioneering initiative, as it’s a dedicated national framework focused on the digital technology sector. Few countries, including Singapore, South Korea, and those in the European Union, have demonstrated such legislative clarity and decisiveness.
Vietnam’s strategic vision revolves around solidifying its cryptocurrency framework, incentivizing AI development, enhancing semiconductor production, and cultivating a digitally adept workforce. The goal is to establish itself as an alternative to tech hubs like Silicon Valley and Shenzhen—free from excessive geopolitical entanglements.
Ultimately, Vietnam’s digital law is not merely a set of regulations; it represents a firm declaration of intent. While discussions around blockchain frameworks and AI ethics persist in Western countries, Vietnam is laying down the legal and infrastructural groundwork for the next phase of the digital economy.
In summary, Vietnam’s recent legalization of cryptocurrencies is a transformative step that could reshape the country’s economic landscape. The nation is setting itself up not only to participate in the burgeoning digital economy but also to lead initiatives in technology that could influence the global stage. As it progresses towards becoming a digital power, Vietnam’s actions illustrate a commitment to innovation and technological advancement, reinforcing its position as a significant player in the evolving world of cryptocurrencies and beyond.
