How Vietnam is using crypto to fix its FATF reputation
Vietnam is actively using cryptocurrency regulation as a strategic tool to improve its reputation with the Financial Action Task Force (FATF) and address concerns that led to its gray listing.
The country is focusing on aligning its crypto regulatory framework with FATF standards, which targets anti-money laundering (AML) and counter-terrorism financing (CFT) in the virtual asset sector.
Key measures Vietnam is implementing include:
Legalizing digital assets and cryptocurrencies under the new Digital Technology Industry law, which provides a clear legal definition of digital assets and recognizes ownership rights authenticated by blockchain technology.
Enforcing licensing requirements for virtual asset service providers (VASPs), ensuring that exchanges and related businesses operate under regulatory oversight.
Implementing AML/KYC (Know Your Customer) protocols and transaction monitoring systems to detect and prevent illicit activities such as money laundering and fraud within the crypto space.
Combating digital asset fraud by establishing stricter regulations and oversight, responding to the high incidence of crypto-related scams etc. that previously damaged Vietnam’s financial integrity.
Collaborating with international organizations to monitor suspicious transactions and prevent cross-border money laundering, thereby improving transparency and compliance with global standards.
These efforts are part of a broader push to rebuild Vietnam’s international financial reputation, reduce the risks associated with unregulated crypto buying selling, and position the country as a compliant and attractive hub for digital asset innovation. The official legal recognition of crypto assets starting January 1, 2026, further signals Vietnam’s commitment to a regulated digital economy aligned with FATF expectations.
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