Vietnam Legalizes and Regulates Crypto Assets with Digital Technology Industry Law, Boosting Market Clarity and Investor Protection
Vietnam has taken a major step in cryptocurrency regulation by passing the Digital Technology Industry Law on June 14, 2025. This legislation, effective January 1, 2026, legalizes and provides a comprehensive regulatory framework for digital assets, including cryptocurrencies. The law distinguishes between ’crypto assets’ (blockchain-based tokens used for transaction authentication and ownership) and ’virtual assets’ (digital instruments mainly for trading or investment, excluding securities tokens, stablecoins, and CBDCs). Key features include enhanced measures for cybersecurity and anti-money laundering, aligning with international standards to address concerns from the Financial Action Task Force (FATF), which placed Vietnam on its grey list in 2023. The government gains expanded powers to regulate market participants and trading, while also introducing investment incentives in sectors such as AI, semiconductor design, and digital infrastructure to attract high-tech firms. With Vietnam ranking fifth globally in crypto adoption, this law aims to protect investors, encourage innovation, attract foreign investment, and reinforce market legitimacy. The move is expected to strengthen investor confidence and could increase participation from both local and international players in Vietnam’s fast-growing crypto market.
Bullish
Vietnam’s move to legalize and comprehensively regulate crypto assets with the Digital Technology Industry Law sets a clear legal framework for the country’s rapidly growing digital asset market. By distinguishing between different types of digital assets, enhancing AML measures, and aligning with international standards, the country makes itself more attractive to both domestic and foreign investors. Increased regulatory clarity typically results in greater institutional participation, investor confidence, and overall market activity. Historical precedent in other regions, such as the US and EU, shows that regulatory clarity is often met with positive price momentum and increased market legitimacy in the local crypto sector. In the short term, traders can expect heightened interest and potentially increased volumes in Vietnam-related crypto markets. Long-term, this foundation should support sustained market growth and innovation.