Vietnam is turning cryptocurrency into a lever for developing the digital economy.

On June 14, 2025, the National Assembly officially passed the Digital Technology Industry Law – a significant milestone in the journey to完善 the legal framework for the digital asset sector. This law will take effect from January 1, 2026, providing a clear legal framework for the rapidly developing cryptocurrency industry in Vietnam. At the same time, this is also part of a strategic effort to improve the national financial image and aim to be removed from the gray list of the international financial task force (FATF).

New law – Comprehensive legal framework for digital assets

With the passage of this law, Vietnam has become the first country in the world to enact a specific law for the digital technology sector. The law classifies digital assets, sets licensing requirements, and establishes strict compliance mechanisms in line with international standards. Through stringent management of the cryptocurrency sector, Vietnam hopes to address concerns from FATF, strengthen investor confidence, and assert its position as a digital economic hub in Southeast Asia.

About FATF and the gray list

Established in 1989 by the G7, FATF is a global organization that sets standards for combating money laundering, terrorist financing, and threats to the international financial system. Countries that do not meet FATF standards may be placed on the "gray" or "black" lists, severely impacting their financial reputation and ability to attract international investment.

Vietnam was placed on the FATF gray list in June 2023 due to numerous gaps in financial oversight, customer identity verification (CDD), and a lack of control over virtual asset service providers. FATF also expressed concerns about the ability to prevent financing related to the proliferation of weapons of mass destruction.

Highlights of the Digital Technology Industry Law

• Bold growth target: Strive to build 150,000 digital technology enterprises by 2035 under the "Make in Vietnam" initiative.

• Clear classification: Digital assets are divided into two groups:

  • Virtual assets: Digital assets that do not have financial characteristics (, such as virtual items ), excluding securities, fiat currency, or CBDC.
  • Cryptocurrency (crypto): Digital assets that use encryption or blockchain technology, including Bitcoin, Ethereum… but do not include CBDC, stablecoins, or securities.

• (sandbox) Testing Mechanism: Allows for controlled experimentation with blockchain technology, DeFi, and digital asset products.

• Strong incentives: 4 years of tax exemption, subsidies, and import tax exemption for startups and foreign technology investors. Vietnamese technology experts are exempt from taxes for 5 years; foreign experts are granted a 5-year visa without the need for a work permit.

• Legal framework for AI and digital assets: Apply risk-based management, in line with FATF's guidance.

The solution Vietnam proposed to address the FATF's requirements.

The Digital Technology Industry Law not only has domestic significance but also serves as a strategic lever to help Vietnam escape the FATF gray list:

• Legal recognition of cryptocurrency: End the legal "gray area" by officially recognizing the ownership and use of crypto.
• Apply risk management: Clearly classify assets, exclude stablecoins from the scope of the law, and implement separate supervision under financial law.
• Enhancing AML/CFT: Crypto exchanges and wallets must comply with regulations regarding identity verification, transaction monitoring, and reporting suspicions.
• International Cooperation: Facilitate coordination with foreign agencies in investigating cross-border digital asset fraud.

High-profile cases and the urgency of the new law

Two recent scams highlight the urgency of improving the legal framework:

• February 2025: Four individuals behind the BitMiner scam project were arrested for embezzling over 4 billion VND from 200 people.
• December 2024: Hanoi police dismantled the organization "Million Smiles" promoting the fraudulent coin QFS, totaling more than 1.17 million USD.

The new law gives authorities effective tools for investigating, prosecuting, and preventing acts of digital asset fraud – something that was very limited before.

Vietnam – The center of digital technology innovation in the region

Through the new law, Vietnam is demonstrating its ambition to become a regional center for digital technology innovation:

• Strong R&D Support: Providing scholarships, grants, and infrastructure for chip research, cloud computing, and AI.
• Human Resource Development: Investing in vocational training, university-business collaboration, and high-tech internship programs.

Impact on international image and upcoming FATF assessment

The issuance of the Digital Technology Industry Law is an important step in Vietnam's FATF compliance strategy. This law specifies the requirements outlined in FATF Recommendation 15, which is one of the main reasons Vietnam was placed on the gray list. At the same time, the State Bank has also amended Circular 09, enhancing the CDD process, standardizing reporting, and tightening AML regulations.

If the measures are fully implemented before January 2026, Vietnam has a great opportunity to be removed from the gray list – thereby improving international capital flows, attracting startups and venture capital investors, and enhancing the connection between the traditional financial system and the digital economy.

Vương Tiễn