Vietnam’s New Law Spurs Growth in Crypto and AI Sectors

Vietnam Passes Historic Crypto Law to Spark Digital Revolution by 2026

Vietnam has taken a bold step towards redefining its role in the global digital economy, passing its first comprehensive cryptocurrency law that will take effect on January 1, 2026. This landmark legislation not only legalizes digital assets but also positions the country as a potential leader in blockchain, artificial intelligence, and semiconductor innovation. The move signals Vietnam’s determination to clean up its crypto industry, attract global investment, and emerge as a major technology hub by 2035.

A Groundbreaking Move for Digital Asset Regulation

With an overwhelming majority of 441 out of 445 legislators voting in favor, Vietnam’s National Assembly approved the Rule on Digital Technology Industry, marking a turning point for the nation’s approach to digital finance. Unlike many countries that seek to regulate cryptocurrencies through existing financial frameworks, Vietnam has opted for a dedicated crypto law — a first of its kind globally.

The law provides clear definitions and regulatory distinctions between crypto assets, virtual assets, and other forms of electronic property. Crypto assets refer to digital tokens using encryption technology for issuance, transfer, and storage, while virtual assets cover instruments used primarily for exchange or investment purposes. The law deliberately excludes traditional securities, fiat currency representations, and other regulated financial instruments to avoid overlap with existing banking and financial laws.

According to government officials, this move is critical for building a safe, transparent environment for blockchain innovation while protecting Vietnamese consumers from fraud and abuse.

From FATF Grey List to Digital Finance Leader

The new legislation is also part of Vietnam’s broader strategy to shed its inclusion on the Financial Action Task Force (FATF) grey list, where it has remained due to concerns over financial crime risks. By formalizing cryptocurrency regulations, Vietnam aims to strengthen anti-money laundering (AML) and consumer protection standards, addressing gaps that have plagued its crypto sector for years.

For years, regulatory uncertainty has driven many of Vietnam’s blockchain startups and crypto businesses to relocate to countries like Singapore that offer clearer legal frameworks. This law is designed to reverse that trend, giving domestic innovators a stable environment to build and grow.

Rising Crypto Adoption Despite Uncertainty

Vietnam’s embrace of crypto regulation comes as no surprise to those familiar with its rapidly growing digital economy. In 2024, blockchain analytics firm Chainalysis ranked Vietnam seventh globally in terms of cryptocurrency adoption. Despite lacking a formal legal framework, the country saw approximately $105 billion in blockchain-related transactions and investments between 2023 and 2024. However, much of this activity took place through offshore structures that did little to support Vietnam’s economy directly.

By enacting formal regulations, officials hope to redirect these investments into the domestic economy, encourage job creation, and strengthen the country’s technological capabilities.

Vietnam’s Tech Vision: 150,000 Digital Firms by 2035

The crypto law is part of a much larger national vision. Vietnam aims to establish itself as a regional technology powerhouse by 2035, with plans to create 150,000 digital technology companies spanning sectors from semiconductors to artificial intelligence. This vision is underpinned by a package of generous incentives, including tax breaks, import duty exemptions, and free land leases for qualifying businesses.

Projects investing over $80 million in data centers or over $160 million in semiconductor fabrication plants are eligible for special tax incentives. Companies in these sectors may enjoy reduced corporate income tax rates for up to 15 years, designed to attract foreign and domestic investment alike.

Vietnam’s strategy extends beyond simply attracting businesses — it seeks to nurture a domestic talent pool. The government plans to integrate digital skills training into national education curricula while offering grants and subsidies for workforce development programs in cutting-edge technologies.

Cryptocurrency as a Catalyst for Broader Digital Growth

While the new crypto law offers a comprehensive legal foundation for digital currencies, its purpose extends far beyond the crypto sector itself. Government officials view the law as essential infrastructure for Vietnam’s ambitions in AI, semiconductors, and digital infrastructure.

Vietnam is also preparing to launch national R&D initiatives and innovation hubs that will support startups and established companies alike in the creation of core technologies. Authorities believe that by fostering a regulatory environment conducive to blockchain and digital finance, the nation can accelerate development across related industries.

The law’s passage also sends a clear message internationally: Vietnam is ready to compete for its place in the emerging digital economy. By providing regulatory clarity and offering investor-friendly policies, the government hopes to attract global capital flows that can help fund its ambitious technology roadmap.

Strengthening Consumer Protection and Combating Fraud

A key motivation behind the new law is to address the rise in cryptocurrency fraud and scams that have undermined trust in Vietnam’s crypto market. High-profile incidents such as the MTC and BitMiner scams, which resulted in significant losses for local investors, exposed the dangers of operating in an unregulated space.

The new law introduces strict AML provisions and mandates consumer protection measures, including transparent disclosures, secure custody practices, and clear dispute resolution processes. These measures are designed to safeguard investors and establish confidence in legitimate crypto businesses.

Authorities have emphasized that the law is not intended to stifle innovation but to ensure that the industry grows responsibly, with appropriate guardrails in place.

Regional Impact and Global Significance

Vietnam’s dedicated crypto law could set a precedent for other nations in Southeast Asia and beyond. As governments around the world grapple with how to regulate digital assets, Vietnam’s approach offers a model of how dedicated legislation — rather than patchwork rules within existing systems — can provide clarity and foster growth.

Industry experts suggest that if Vietnam successfully implements the law, it could encourage similar reforms in neighboring countries looking to balance innovation with regulation.

Moreover, Vietnam’s strategy could help attract multinational technology firms seeking stable jurisdictions for their digital asset operations, further bolstering the nation’s profile as an emerging tech hub.

The Road Ahead

As Vietnam prepares for the law’s implementation in 2026, much work remains. Regulatory agencies will need to establish detailed guidelines, licensing procedures, and oversight mechanisms. Public education efforts will be critical to ensuring that consumers and businesses alike understand their rights and responsibilities under the new regime.

While challenges lie ahead, the passage of this law represents a major step forward for Vietnam’s digital economy. If the nation can successfully deliver on its vision, it could not only clean up its crypto sector but position itself as a global leader in digital finance and technology innovation.

Writer @Erlin

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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