Vietnam Becomes First Country to Pass Standalone Digital Asset Law | BSCN (fka BSC News)

Vietnam has officially become the first country to pass a standalone law focused on the digital technology industry, which includes full legal recognition of cryptocurrency, according to local media publication, The Investor.

The Law on Digital Technology Industry, approved by the National Assembly on June 14, 2025, goes into effect on January 1, 2026, marking a defining moment in Southeast Asia’s regulatory landscape.

While countries like Singapore and South Korea have issued piecemeal crypto guidelines, Vietnam’s approach is comprehensive. The law addresses everything from asset classification and cybersecurity to consumer protection and anti-money laundering (AML) compliance.

Hanoi Flag Tower## Clear Definitions for Digital Assets

For the first time, Vietnam has provided legal definitions for digital assets. The law distinguishes between “virtual assets” and “crypto assets.” Virtual assets refer to digital goods used for investment or exchange—this includes loyalty points or in-game currencies. In contrast, crypto assets include decentralized, cryptographically secured tokens such as Bitcoin**,** Ethereum, and NFTs.

Importantly, the legislation excludes securities, fiat-backed stablecoins, and Central Bank Digital Currencies (CBDCs) from both categories. These remain under existing financial regulations. This sharp distinction creates clarity for developers, exchanges, and institutional investors.

Comprehensive Regulation with Global Standards

The Vietnamese government now holds the authority to define business conditions, licensing procedures, and compliance requirements for all digital asset services. This includes AML protocols and consumer protection laws, mirroring international standards.

Vietnam has been under scrutiny since it landed on the Financial Action Task Force (FATF) gray list in 2023. The new law directly responds to this challenge by introducing strict measures to prevent money laundering, terrorist financing, and cybercrime in the digital asset space.

This regulatory clarity is expected to encourage investment from global financial institutions that have so far hesitated due to legal uncertainty.

Tackling Crypto Scams with Legal Teeth

Vietnam has seen a surge in crypto-related fraud, with several major scams making headlines in recent months. The most infamous case involved the fake exchange Matrix Chain (MTC), which defrauded nearly $400 million from investors. Other schemes, like the BitMiner fraud and QFS spiritual coin scam, further exposed gaps in regulation.

The new law introduces strong consumer safeguards and empowers regulators to act swiftly against fraudulent schemes. Clear asset definitions and licensing frameworks will help weed out bad actors while protecting genuine platforms and users.

Wider Vision: Vietnam’s Digital Transformation

While crypto recognition headlines the legislation, the law casts a wider net. It lays the foundation for Vietnam’s transformation into a regional technology powerhouse. Key pillars include artificial intelligence, semiconductor development, and robust digital infrastructure.

To back this ambition, the government is offering tax incentives, research and development subsidies, and land-use benefits for tech companies. AI data centers and chip design firms are top targets. The plan also includes major investments in digital education, with digital skills to be integrated into school curricula from early education.

Vietnam’s Ministry of Education and provincial authorities are expected to roll out training programs to prepare the next generation of tech professionals.

Impact on Regional and Global Crypto Markets

Vietnam’s legalization of cryptocurrency sends a strong message across Asia and beyond. According to Chainalysis, Vietnam ranked fifth in global crypto adoption in 2024 and topped the list in 2021 and 2022. Despite growing adoption, users and platforms have long operated in a legal grey area.

Compared to the EU’s MiCA regulation, which came into force in 2023, Vietnam’s framework offers similar legal clarity but with a national strategy behind it. The United States, in contrast, still lacks federal crypto-specific legislation, leaving a regulatory vacuum that Vietnam has now decisively filled.

Vietnam’s law could become a model for other emerging markets struggling to balance innovation with investor protection

Starting January 1, 2026, digital asset companies operating in Vietnam will need to align with the new framework. This includes licensing, compliance, and robust internal protocols. Investors—retail and institutional—can finally participate in Vietnam’s crypto market without fear of regulatory backlash.

Vietnam’s ambitious step is not just about cryptocurrency. It’s about building a legitimate, secure, and future-proof digital economy that can compete globally.