Vietnam’s Digital Industry Law: Legal Recognition for Crypto Assets and Path to Innovation

Vietnam has officially adopted a landmark law providing legal recognition to crypto assets and broader digital assets. Passed by the National Assembly on 14 June 2025, the Law on Digital Technology Industry (CNCNS 2025) takes effect on 1 January 2026, establishing a pioneering legal framework in Southeast Asia. This article explores the key features of that law, its implications for Vietnam’s digital economy, and the opportunities it unlocks for investors, enterprises, and regulators.

Legalisation of Crypto Assets: A New Legal Horizon

The new law marks Vietnam’s formal entry into legal recognition of digital assets, defined in dual categories: “virtual assets” and “crypto assets”. The former refers to electronic assets usable for exchange or investment, and the latter to assets created, issued, stored, and transferred using cryptographic or analogous digital validation technology. Crucially, crypto assets like Bitcoin and Ethereum now fall squarely within the legal category of “tài sản mã hóa”, and are explicitly distinguished from securities, digital fiat currency, or other regulated financial assets.

Under the law’s Article 46, these assets are defined as Civil Code-recognized property, existing as digital data created, published, stored, transferred, and authenticated via blockchain or equivalent technology. This clarity resolves long-standing legal ambiguity.

Rationale and Policy Context

Vietnam’s crypto market has been among the world’s most active, yet largely unregulated. This legislative move emerges from concerns over fraud, capital flight, and investor protection, while also recognizing the potential of blockchain and digital assets to drive innovation. Directive 05/CT‑TTg of 1 March 2025 tasked the Ministry of Finance and the State Bank with proposing a legal framework by March, prompting a surge in regulatory momentum.

Legal experts and policymakers emphasize that formalization supports both domestic innovation and public trust. As highlighted by a senior RMIT and blockchain expert, this transition lifts millions of investors out of a legal gray zone, encouraging confidence in asset ownership and use.

Core Provisions and Scope

The Law establishes several important dimensions of crypto regulation:

Firstly, it clearly identifies the scope of assets covered, explicitly excluding securities, digital forms of fiat currency, and regulated financial instruments. Crypto assets are treated as distinct digital property, thereby legitimizing them subject to civil property law.

Secondly, it outlines management of crypto assets, including rules for issuance, storage, transfer, ownership rights, cybersecurity protection, and anti‑money laundering measures. This comprehensive regime is designed to ensure accountability and user safety.

Thirdly, the legislation lays the foundation for official crypto asset exchanges, licensing requirements, and operational standards. Vietnamese authorities, led by the Customs and Ministry of Finance, are mandated to issue implementing regulations and pilot decrees, including a market pilot due by 15 July 2025.

Economic and Institutional Impacts

The law is expected to yield multiple benefits. Analysts predict improved investment opportunities, alternative capital-raising channels for businesses, and the potential for significant tax revenue from crypto-related transactions. Formal regulation also aims to curb fraud and money laundering, boosting market integrity.

Vietnam becomes one of the first countries with dedicated legislation for crypto assets—setting an example in the region. Beyond crypto, the law fosters safer innovation in blockchain, AI, semiconductor industries, and digital infrastructure, aiming to cultivate 150,000 digital technology firms by 2035.

From Legal Ambiguity to Regulated Space

Previously, crypto trading in Vietnam functioned in legal limbo. Informal marketplaces and offshore platforms served millions of users without clear regulatory oversight. The new law ends that ambiguity by granting legal certainty to digital asset ownership, transactions, and custody.

Experts note that legal clarity may discourage capital flight through unlicensed platforms, retain domestic innovation, and attract foreign investment. Transparent regulation also enhances investor confidence in crypto holdings and services.

Regulatory Roadmap and Implementation Timeline

The Law is effective from 1 January 2026, but regulatory preparations are underway immediately. Ministries are required to issue subordinate legislation – covering licensing, AML/CTF protocols, cybersecurity standards, and enforcement mechanisms – prior to the effective date. A pilot trading platform is expected in operation before mid‑July 2025.

Regulators must also address investor education, dispute resolution paths, and integration with existing financial and civil regulations to avoid legal overlaps or conflicts.

Potential Challenges and Path Forward

Despite the positive step, several challenges remain. The regulatory design must balance innovation with risk control. Overly strict or fragmented regulations may stifle market entrants, while insufficient enforcement could undermine legality.

Clarity is also needed on taxation of digital transactions, cross-border trading, stablecoin regulation, and licensing criteria for custodians and exchanges. Equally, continued alignment with international norms and strong institutional capacity will be essential for effective oversight.

Conclusion

Vietnam’s Digital Technology Industry Law “legalizes crypto assets” – a watershed reform that transitions the digital asset ecosystem from gray to recognized territory. Effective 1 January 2026, the law introduces definitions, ownership rights, safeguards, and regulatory tools needed for a legitimate, transparent crypto market.

By establishing a clear legal foundation, Vietnam supports domestic innovation, attracts investment, and enhances investor protection. While challenges lie ahead in designing enforcement systems, taxation rules, and licensing regimes, the law signals Vietnam’s intent to become a leading hub for digital asset commerce in Southeast Asia.