Vietnam has officially taken a significant step towards regulating its digital economy with the passage of the Law on Digital Technology Industry. This groundbreaking legislation introduces the country’s first comprehensive legal framework that recognizes and categorizes crypto assets, aligning Vietnam with global anti-money laundering (AML) standards.

Key Highlights of Vietnam’s New Crypto Legislation

The new law, approved by the National Assembly on June 14, 2023, is set to take effect on January 1, 2026. It is designed to foster innovation in emerging technologies, including artificial intelligence (AI) and semiconductors, while providing much-needed clarity for the cryptocurrency sector, which has been in regulatory limbo for years.

One of the most notable aspects of the legislation is its two-tier classification system for digital assets. It introduces separate categories for virtual assets and crypto assets, defining their roles and usage within Vietnam’s economy:

  • Virtual Assets: Digital assets primarily used for exchange or investment purposes.
  • Crypto Assets: Digital assets that utilize encryption or similar technologies for transaction validation, creation, issuance, storage, or transfer.

This classification excludes securities and fiat currencies, ensuring a clear distinction between traditional financial instruments and digital assets.

Alignment with Global Anti-Money Laundering Standards

Vietnam’s inclusion on the Financial Action Task Force’s (FATF) gray list since 2023 has increased scrutiny on its financial institutions and cross-border transactions. This legislation aims to address these concerns by establishing a regulatory framework that complies with global AML standards. Key measures include:

  • Cybersecurity protocols to prevent money laundering, terrorism financing, and the proliferation of weapons.
  • Development of detailed classifications and management protocols for digital assets by regulatory authorities.
  • Support for compliance with FATF recommendations on virtual asset regulations.

By implementing these measures, Vietnam seeks to enhance its financial transparency and potentially secure removal from the FATF gray list.

Broader Implications for the Digital Technology Sector

Beyond cryptocurrencies, the Law on Digital Technology Industry introduces extensive incentives for digital technology enterprises and innovation programs. These initiatives aim to position Vietnam as a hub for emerging technologies. Key provisions include:

  • Encouragement of controlled technology experimentation through special policies.
  • Development of shared digital infrastructure across multiple sectors.
  • Subsidies for workforce training and hiring high-quality personnel in digital industries.

Additionally, the legislation prioritizes investments in software production and AI data centers, granting these sectors tax, investment, and land-use incentives. These areas are formally recognized as strategic priorities under Vietnamese law, reflecting the government’s commitment to fostering growth in the digital technology landscape.

Preparation for 2026 Implementation

The law’s implementation timeline allows a transition period for businesses and regulators to establish operational frameworks. The Ministry of Science and Technology, which spearheaded the legislation, will work closely with other government bodies to ensure a smooth rollout.

Local governments are also tasked with developing human resource policies for the digital technology sector. This includes specific initiatives to bolster talent pipelines in critical areas such as semiconductors, AI systems, and digital technology products.

What This Means for Vietnam’s Crypto and Tech Landscape

The Law on Digital Technology Industry represents a pivotal moment for Vietnam’s digital economy. By providing a robust legal framework for crypto assets and fostering innovation in emerging technologies, the country is positioning itself as a leader in the global digital transformation. For investors, businesses, and technology enthusiasts, this development marks a significant opportunity to participate in Vietnam’s rapidly evolving digital landscape.

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