On June 14, 2023, Vietnam's National Assembly passed the Digital Technology Law, establishing legal recognition for crypto assets and laying the groundwork for digital innovation.
Recognition of Crypto Assets
The legislation, effective January 1, 2026, categorizes crypto assets as virtual assets validated through encryption or digital technologies, excluding securities and digital fiat currencies.
Regulation in Response to FATF Gray List
Vietnam's placement on the FATF gray list in June 2023 due to financial crime defense gaps necessitated rapid regulatory action. Deputy Prime Minister Lê Minh Khái has set a target to remove the country from the gray list within two years, achievable through the implementation of 17 FATF recommendations.
Digital Technologies and Vietnam's Future
The legislation aims not only to regulate cryptocurrencies but also to position Vietnam as a digital technology hub, with incentives for artificial intelligence and semiconductors. This initiative is expected to enhance the country's competitiveness on the international stage.
The enactment of the Digital Technology Law by Vietnam opens new avenues for crypto investments and digital innovations, which may influence other Southeast Asian countries.
