Vietnam will implement its new Law on Digital Technology Industry starting on January 1, 2026. This decision represents an important advance in the regulation of the digital economy and the introduction of cryptocurrency into the legal system of the country’s economy. This complex piece of legislation is the first of its kind in Vietnam. It seeks to spur innovation across other technologies with growing significance, including artificial intelligence, semiconductors, and crypto-assets.

The new law gives formal recognition to specific sectors, including crypto assets, as strategic priorities under Vietnamese law. By establishing stricter standards for the industry as a whole, the legislation has crypto falling more on the legal side of the spectrum. In addition, it gives businesses and regulators a transition period to develop appropriate operational and regulatory frameworks.

Vietnam has been on the Financial Action Task Force (FATF) gray list since June 2023. This has resulted in a number of compliance challenges for local financial institutions, as well as heightened scrutiny of cross-border transactions. The Law on Digital Technology Industry will address these challenges squarely. Its stated goal is to help develop a “fair and balanced” regulatory environment for digital assets.

the law defines crypto assets as digital assets that use encryption or similar digital technologies for validation during creation, issuance, storage, or transfer - The Investor Vafie Magazine

Crypto assets are defined under the Law on Digital Technology Industry. These assets are digital objects, the creation, issuance, storage, or transfer of which are validated through cryptography or other emerging technologies. This broad definition gives a legal foundation through which lawmakers can regulate all activities involving crypto within their country’s borders.