Vietnam Legalizes Crypto Under New Digital Technology Law

Vietnam’s National Assembly approved a new law on June 14 that legitimizes cryptocurrencies under regulatory oversight, effective January 1, 2026. The law distinguishes between virtual and crypto assets and includes cybersecurity measures to meet international standards. It aims to boost Vietnam’s reputation as a digital tech hub, while recent scams expose ongoing risks in the crypto space.

In a significant move for the digital finance landscape, the National Assembly of Vietnam has officially approved the Law on Digital Technology Industry on June 14, marking a pivotal shift for cryptocurrencies in the country. Set to launch on January 1, 2026, this law recognizes digital assets, positioning Vietnam to enhance its regulatory framework for evolving technologies, as reported by various local news sources.

The newly enacted law categorizes digital assets into two main types: virtual assets and crypto assets. Both categories leverage encryption and digital tech but notably exclude securities, digital fiat currencies, and other financial instruments. This delineation sets the stage for the government to craft detailed regulations, business conditions, and oversight, ensuring a safe playing ground for these emerging technologies.

Notably, the legislation brings in substantial cybersecurity measures and Anti-Money Laundering protocols ready to meet international standards, largely aiming to satisfy the Financial Action Task Force’s (FATF) concerns that have kept Vietnam on its “gray list” since 2023. This effort may signal a new commitment to improving the country’s financial integrity and transparency.

But the implications of this law stretch far beyond just crypto. Vietnam aims to carve out a reputation as a leading digital tech hub with this legislation. It includes enticing incentives for companies working in artificial intelligence, semiconductors, and other vital digital infrastructures, promising tax benefits and research support. The Vietnamese government pushes regional administrations to bolster workforce training and education, integrating digital tech skills into national curriculums – a move that could reshape the future workforce.

In a bold declaration, the Vietnamese government asserted, “With this move, Viet Nam has become the first country in the world to enact a standalone law specifically dedicated to the digital technology industry.” This could not only enhance crypto operations but also inspire foreign investment and innovation in the tech sphere.

However, Vietnam’s journey with crypto hasn’t been without bumps. Earlier this year, police apprehended four people operating a fraudulent crypto mining scheme called BitMiner that claimed to be based in Dubai, defrauding upward of 200 victims of more than 4 billion Vietnamese dong, or about $157,300. On top of that, in December 2024, they blocked another scheme that had already swindled $1.17 million from potential investors, demonstrating a worrying trend of scams targeting the crypto-hungry populace.

This ever-evolving narrative, with both regulatory progress and scam operations, paints an intriguing picture of Vietnam’s bold strides into the digital economy and the challenges that lie ahead for its regulators and innovative enterprises.

Vietnam’s National Assembly has taken a groundbreaking step in recognizing cryptocurrencies by passing the Law on Digital Technology Industry, which will redefine the landscape for digital assets come 2026. With a focus on cybersecurity and clear asset classifications, the law aims to align with international standards while fostering innovation within the digital sector. Yet, the repercussions of past scams warn of risks that continue to accompany the burgeoning crypto market in Vietnam.

Original Source: cointelegraph.com