Vietnam has officially legalized cryptocurrency by adopting a digital technology law effective January 1, 2026. This move aims to enhance the country's standing in digital technology.
Emergence of Regulatory Approach to Cryptocurrency
The Law on Digital Technology was drafted by the Ministry of Science and Technology, marking a pivotal shift in Vietnam's approach to digital assets. "Effective January 1, 2026, the law—drafted by the Ministry of Science and Technology—signals Vietnam's ambition to become a digital powerhouse." — Ministry of Science and Technology, Vietnam Government.
Tax Incentives to Attract Investment
With the new law, Vietnam aims to attract substantial domestic and international investment, offering tax incentives and innovation hubs. The legal framework anticipates changes in transaction volumes and enhanced liquidity flows within local crypto markets.
Comparison with Regulations in Japan and South Korea
Similar to Japan and South Korea, Vietnam is taking steps to formalize its cryptocurrency sector. Successful reforms in these countries have led to increased domestic trading, a trend that Vietnam hopes to replicate.
The legalization of cryptocurrency in Vietnam is a significant step toward the development of a digital economy, potentially fostering investment and integration into the global market.
