KEY FACTS: The Vietnam’s National Assembly has passed the Law on Digital Technology Industry, legalizing crypto assets effective January 1, 2026, marking a significant departure from the country’s 2018 ban on crypto payments and reflecting its fifth-ranked global crypto adoption rate per the 2024 Chainalysis report. The law categorizes digital assets into crypto and virtual assets, excluding securities and digital fiat, while aligning with international anti-money laundering standards, and aims to attract $300 million in Web3 venture capital, bolstered by a $100 billion domestic digital asset market and the May 2025 launch of a government-backed Layer-1 blockchain by 1Matrix.

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Source: Vietnam National Assembly's news portal./ X

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Vietnam Legalizes Crypto Assets Under New Digital Technology Law

Vietnam’s National Assembly unanimously approved the Law on Digital Technology Industry on June 14, 2025. This legislation, set to take effect on January 1, 2026, officially legalizes crypto assets, marking a dramatic pivot from the country’s stringent 2018 ban on cryptocurrency payments. The decision, announced by Bitcoin Magazine, highlights Vietnam’s rapid transformation into a digital economy powerhouse.

For years, Vietnam maintained a cautious stance on cryptocurrencies, with the State Bank of Vietnam declaring crypto payments illegal in 2018 due to concerns over money laundering and financial instability. However, the tide has turned as the country ranks fifth globally in crypto adoption, according to the 2024 Chainalysis Global Crypto Adoption Index. This grassroots embrace of digital assets, particularly among the nation’s youthful and tech-savvy population, has pressured lawmakers to reconsider their approach. The new law reflects a strategic acknowledgment of this trend, aiming to harness the economic potential of blockchain technology while establishing a robust regulatory framework.

The legislation categorizes digital assets into two distinct groups: “crypto assets” and “virtual assets.” Notably, it excludes securities, digital fiat currencies, and other financial instruments from these definitions, providing clarity for businesses and investors. This regulatory structure aligns with international anti-money laundering (AML) and counter-terrorism financing (CTF) standards, a critical step to ensure Vietnam’s integration into the global financial system.

The approval of the Law on Digital Technology Industry is more than a mere legalization of crypto—it signals Vietnam’s broader ambition to become a digital technology hub. The government has outlined plans to attract $300 million in venture capital for Web3 projects. This influx of investment is expected to fuel innovation in blockchain, artificial intelligence (AI), and semiconductor industries, sectors identified as pillars of Vietnam’s future economy.

Beyond crypto, the law introduces sweeping incentives for enterprises, including tax breaks, land-use benefits, and research and development (R&D) support. Regional governments are tasked with subsidizing workforce development, while educational policies will integrate digital technology skills into national curricula. This holistic approach aims to cultivate a skilled labor force capable of competing on the global stage.

The country’s burgeoning digital asset market, estimated at $100 billion domestically, further bolsters its economic case. This figure, combined with the recent launch of a government-backed Layer-1 blockchain platform by tech firm 1Matrix in May 2025, positions Vietnam as a formidable contender in the blockchain space. The 1Matrix network, designed to support public data, digital finance, and government services, was hailed as a milestone in Vietnam’s journey from technology adopter to creator.

The legalization of crypto assets in Vietnam has ignited optimism among industry analysts, who predict the country could rank among the top five global crypto economies by 2030. This ambitious projection challenges the dominance of regional leaders like Singapore, which has long been a beacon for blockchain innovation in Asia. The move is seen as particularly bullish for Bitcoin and other major cryptocurrencies, with experts citing increased adoption and investment as key drivers.

Meanwhile, the law delegates the task of outlining specific business conditions, classifications, and oversight mechanisms to the government, a process that could take months or even years to finalize. Industry stakeholders will be watching closely to ensure that regulations strike a balance between innovation and security. Additionally, the exclusion of crypto from payment systems suggests that Vietnam is prioritizing investment and trading over everyday use, a distinction that may limit its immediate impact on consumer behaviour.

Vietnam's legalization of crypto assets under the Law on Digital Technology Industry is a regulatory milestone as well as a bold declaration of intent. Vietnam is poised to redefine its role in the global economy. This will be made possible with a supportive government, a thriving domestic market, and a strategic vision for technological sovereignty.

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Information Sources:

• The Investor
• Bitcoin Magazine/ X
• Cointelegraph

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