Vietnam Embraces Digital Future with New Crypto Law
In a significant move that sets it apart from many other nations grappling with cryptocurrency regulations, Vietnam has boldly committed to the digital age. On June 14, the National Assembly of Vietnam enacted a groundbreaking Law on the Digital Technology Industry, which will come into effect on January 1, 2026. This legislation not only legally acknowledges crypto assets but also integrates them into a comprehensive legal structure that encompasses artificial intelligence, semiconductors, digital infrastructure, and workforce development. This decisive action positions Vietnam as a formidable contender in the global technology arena.
A Dual Classification System for Digital Assets
In contrast to the indecisiveness seen in regions like the United States, Vietnam has opted for a clear and organized strategy regarding digital assets. The newly established law categorizes digital assets into two main types: Virtual Assets, which include non-financial tokens, loyalty points, and digital items related to gaming; and Crypto Assets, which refer to those based on cryptographic and distributed ledger technologies, such as Bitcoin and Ethereum, as well as potentially NFTs. Notably, these categories are set apart from securities, fiat-backed stablecoins, and central bank digital currencies (CBDCs), which remain unaddressed by this legislation. By officially recognizing cryptocurrencies rather than ignoring or prohibiting them, Vietnam has joined an elite group of countries that are paving the way for digital asset integration. The government is tasked with developing essential aspects such as licensing standards, compliance measures, consumer protections, and anti-money laundering (AML) regulations. With Vietnam currently on the Financial Action Task Force’s (FATF) gray list since 2023, significant efforts to enhance its global reputation are anticipated.
A Broader Vision for National Technology Development
While the law’s provisions for cryptocurrency are noteworthy, its implications extend far beyond that. This legislation lays the groundwork for Vietnam to become a leading digital economy in Southeast Asia. Key elements of the law include: tax incentives for companies in AI and semiconductor sectors, research and development subsidies for chip design and data centers, support for land use and infrastructure tailored to digital businesses, and the integration of digital skills education from an early age. Essentially, Vietnam is not merely focusing on web3 technology; it is constructing a comprehensive digital ecosystem that encompasses everything from hardware to software, education to enterprise. This initiative occurs as many developed nations remain embroiled in discussions about AI governance and cryptocurrency regulations. While Western countries debate, Vietnam is actively progressing.
Ongoing Challenges: The Rise of Crypto Scams
This shift toward a legitimate crypto framework is occurring in the context of widespread fraudulent activities within the country. In February 2025, authorities dismantled a fraudulent mining operation known as BitMiner, which deceived over 200 individuals, resulting in losses exceeding 4 billion VND (approximately $157,000). This scam masqueraded as a Dubai-based entity selling non-existent mining packages. Another notorious scam, “Million Smiles,” swindled investors out of 30 billion VND (around $1.17 million) by promoting a fictitious token called QFS (Quantum Financial System) with dubious claims about “ancestral treasures.” Law enforcement intervened to prevent an additional 300 victims from falling prey to this scheme. Such high-profile fraud cases likely influenced the inclusion of AML measures in the new legislation, as Vietnam recognizes that its aspirations to become a tech hub cannot coexist with rampant scams.
Strategic Implications: Digital Sovereignty and Influence
This development is not solely about fostering economic growth; it also speaks to the concept of digital sovereignty. In a landscape characterized by the technological decoupling between the U.S. and China, Vietnam is making it clear that it seeks to establish its own identity rather than being caught in the crossfire. The new law is unprecedented, representing a standalone approach to national legislation focused specifically on the digital technology sector. No other country—be it Singapore, South Korea, or members of the EU—has adopted such decisiveness in legislative action. The overarching strategy involves securing crypto assets, incentivizing advancements in AI, enhancing semiconductor production, and cultivating a digitally proficient workforce. Vietnam aspires to emerge as an alternative to Silicon Valley and Shenzhen within Asia, free from excessive geopolitical entanglements. The introduction of this digital law signifies a clear intention to build the necessary infrastructure—both legal and physical—for the future of the digital economy while other nations continue to engage in discussions about regulatory frameworks and ethical considerations related to cryptocurrencies and AI.
