Vietnam has enacted the Digital Technology Industry Law, which formally acknowledges digital and crypto assets, a significant move toward regulating and boosting the cryptocurrency sector.

This law was approved on June 14 and will take effect on January 1, 2026. It lays down a comprehensive framework for managing digital assets and encouraging blockchain innovation, as detailed by local media.

Key Points:

• The law classifies digital assets into two categories: virtual assets and crypto assets, where crypto assets utilize encryption for verification during creation and transfers.
• It introduces incentives for blockchain startups and developers in digital infrastructure, featuring state subsidies, tax benefits, and other perks.

This legislation comes as Vietnam aims to enhance its standing on the Financial Action Task Force (FATF) ratings, addressing challenges related to money laundering and terrorism financing. The country is currently on FATF’s grey list due to inadequate anti-money laundering protocols, especially concerning virtual assets.

Additionally, the law empowers the Vietnamese government to set specific regulatory frameworks, including anti-money laundering tactics and cybersecurity standards that align with international expectations.

In summary, the law not only serves a regulatory purpose but also fosters growth in blockchain-related startups and digital infrastructure.