
Key Points
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On June 14, 2025, the Vietnam National Assembly approved the Digital Technology Industry Law, starting from January 1, 2026.
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Due to AML/CFT deficiency, Vietnam’s crypto regulations are part of a broader effort to meet FATF standards after being grayed out in 2023.
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This law distinguishes between crypto assets (e.g., Bitcoin, Ether) and virtual assets (non-financial digital projects), excluding CBDC and securities.
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The law provides for identity inspection, transaction monitoring and reporting obligations to detect and prevent digital asset fraud to resolve execution gaps.
On June 14, 2025, the Vietnam National Assembly passed the digital technology industry law, indicating a significant change in the way the country manages digital assets. Effective from January 1, 2026 introduce Clearly stipulated regulations on rapid growth in Vietnam Cryptocurrency Department. It represents a broader attempt by Vietnam to improve its financial reputation and withdraw from the Financial Action Task Force (FATF) gray list.
With this law, Vietnam has implemented a comprehensive legal framework for digital assets. This includes classified digital assets, licensing requirements and a strong compliance mechanism consistent with international standards. By regulating the cryptocurrency industry, Vietnam aims to address FATF concerns, increase investor confidence and position itself as a digital economy hub in Southeast Asia.
This article explores how crypto reform supports Vietnam’s FATF comeback strategy. It involves Vietnamese crypto law and explains how it addresses FATF concerns.
What is fatf
Founded by the G7 or Seven in 1989, the FATF is a global organization designed to establish standards to prevent money laundering, terrorist fundraising and other threats to the financial system. The FATF formulates policies and monitors its adoption in member states. G7 is an intergovernmental organization that includes seven leading developed economies: Canada, France, Germany, Italy, Japan, the United Kingdom and the United States.
The FATF provides recommendations to shape national laws and evaluate compliance through peer review. Countries that do not meet FATF standards may be placed on a “gray list” or “blacklist”, which may damage their global financial reputation and investment environment.
did you know? Vietnam wants to attract global venture capital by complying with FATF rules Encrypted exchangeturn regulatory clarity into a tool for economic development.
Vietnam’s FATF Grey List Status and Steps toward Financial Reform
In June 2023, Vietnam was placed on the FATF gray list, officially known as the “jurisdiction under monitoring”, agreeing to address its serious flaws. Anti-money laundering (AML) and oppose financing of terrorism (CFT) measures.
The FATF mentioned issues such as insufficient supervision of financial institutions, customer due diligence (CDD), and insufficient supervision of virtual asset service providers. This has also raised concerns about Vietnam’s efforts to combat illegal financing related to the proliferation of weapons.
To be removed from the gray list, Vietnam must fully implement the FATF action plan. This includes strengthening AML laws, improving regulatory oversight, enhancing CDDs and ensuring effective prosecution of financial crimes.
FATF monitors through updates and on-site access. Once compliance is proven, member states will vote in the plenary to decide to remove themselves, demonstrating a renewed trust in the country’s financial integrity.
Vietnam’s laws on the digital technology industry
Vietnam became the first country in the world to pass independent laws specifically targeting the digital technology industry. The law was adopted in June 2025; implementation began in January 2026.
Here are the key highlights of Vietnam’s Digital Technology Industry Law (Digital Technology Law):
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Ambitious growth: The aim is to create 150,000 digital technology companies under the “Made in Vietnam” program by 2035.
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Define categories: The law separates crypto assets (such as Bitcoin, ether) from virtual assets (non-financial digital projects), enabling more precise risk-based adjustments to each FATF-guided.
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Strong incentives: Provide tax relief, grants and import taxes for start-ups, small and medium-sized enterprises and foreign tech investors.
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Labor Support: Vietnamese digital experts receive five-year tax exemption; foreign experts receive five-year visas and no work permit requirements.
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AI and Digital Assets Regulations: A risk-based AI framework and legal rules for encryption and virtual assets were introduced.
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Regulatory Sandbox: Allows control testing of blockchain, DEFI and virtual asset technologies to facilitate innovation.
Observe Vietnam’s encryption method carefully
The law divides digital assets into two categories:
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Virtual Assets: Non-financial digital projects are used for exchange or investment. These excluded securities, Central Bank Digital Currency (CBDCS)fiat currencies and traditional financial instruments.
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Crypto Assets: Use encryption or blockchain technology to manage digital assets issued, transmitted and stored. Like virtual assets, they do not include securities or CBDC.
This classification of digital assets promotes a structured legal framework that enables the regulatory use of these assets while distinguishing these categories from mainstream financial products. It requires government guidance for licensing, oversight and operation for each category, which marks a move towards transparency and compliance.
The law excludes securities, CBDCs and traditional financial instruments from these categories.
Key changes to crypto startups include legal recognition, regulatory frameworks and tax incentives. The law also includes provisions for pilot sandbox mechanisms for virtual asset products and services. Tax exemptions, subsidies and labor training programs are available for blockchain startups.
did you know? Vietnam’s crypto law allows authorities to internationally engage in digital asset fraud, improve cross-border investigations and curb global crypto crimes.
How Vietnam solves the FATF problem
Vietnam’s laws on the digital technology industry are not only a domestic milestone, but a critical step towards aligning Vietnam’s digital asset industry with AML’s FATF standards and opposing financing of terrorism.
Key highlights include:
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Official legalization of encryption: Vietnam’s 2025 law ends legal ambiguity by recognizing ownership and use of cryptocurrencies, consistent with the FATF’s efforts to clearly regulate digital assets regulation.
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Define categories: The law separates crypto assets (such as Bitcoin, ether) from virtual assets (non-financial digital projects), enabling more precise risk-based adjustments to each FATF-guided.
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AML and CFT integration: Crypto exchanges and wallet providers will be under state oversight to help Vietnam address FATF’s concerns about weakness Client due diligence and illegal finance.
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Not including stable: Fiat-supported stablemycin is regulated Separately In accordance with financial law, ensure continuous supervision consistent with the FATF’s risk-based approach and reduce systemic risks.
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Corporate regulatory clarity: Clear rules attract crypto startups and help formalize the industry, making it easier to monitor transactions, execute KYCs and reduce capital flights.
These reforms directly support Vietnam’s goal of exiting the FATF gray list by creating a transparent, controlled crypto environment that meets global standards.
The legislation also authorizes the government to define licensing rules, asset classification and oversight mechanisms to ensure that crypto service providers and financial institutions operate in a regulated environment.
Through these measures, Vietnam marks its commitment to meeting the FATF standards and regaining international trust in the international financial ecosystem.
Vietnam’s new crypto legal weapons division targets digital asset fraud
The law provides a clear legal framework for the Vietnamese authorities to investigate, prosecute and Stop digital asset fraud. Previously, the lack of legal tools hindered law enforcement. The law describes compliance obligations such as identity checking, transaction monitoring and reporting obligations.
Two recent fraud cases highlight the urgency of these reforms:
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In February 2025, the authorities Arrested The four people behind Bitminer are a fake crypto mining program that deceived 200 victims of more than 4 billion Vietnamese (about $157,300).
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December 2024, Hanoi Police Destroyed A scam involving a million-smile smile, which uses deceptive ads to promote a cryptocurrency called QFS, resulting in a loss of approximately $1.17 million.
The laws passed by the Vietnam National Assembly include AML and CFT measures that require crypto service providers to perform compliance procedures such as identity checks, transaction monitoring and reporting obligations.
The provisions of the law promote greater cooperation with international regulators. Vietnam has facilitated cooperation with foreign authorities in conducting cross-border investigations by aligning its cryptographic regulations with global standards.
The law is particularly important for addressing transnational crypto crimes, which are often cross jurisdictions. By resolving legal gaps and strengthening regulatory coordination, Vietnam has strengthened its national law enforcement and reputation in the global financial community.
did you know? Not only does it hurt reputation on the FATF gray list; it can make foreign banks reluctant to work with domestic institutions, limiting capital flows and investments.
Open the door to digital innovation
Vietnam’s new cryptography is part of its ambition to become a digital technology hub in Southeast Asia. By formally recognizing crypto assets, the government welcomes innovation and attracts startups and investors around the world.
The law provides important incentives for tech companies, including:
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Tax cuts for blockchain, AI and CHIP design companies.
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Subsidies to access digital campuses and innovation parks.
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Grants and infrastructure support for R&D in semiconductor and cloud technologies.
To support the ecosystem, the government also invests in digital education through career programs, university-industry collaborations and technical apprenticeship systems to ensure a skilled workforce in the future.
These integrated efforts aim to build Vietnam as a regional leader in digital innovation.
Vietnam’s global image and future FATF reviews
Vietnam’s cryptocurrency law is at the heart of its FATF compliance strategy. By defining virtual and crypto assets and executing licensing rules, AML/KYC, Cybersecurity And transaction supervision, the country is aligned with FATF Recommendation 15, which is one of the key issues cited during its gray listing.
Meanwhile, Vietnam State Bank has tightened AML rules, updated risk assessments, standardized reporting practices and strengthened CDD under revised Notice 09. If fully implemented by January 2026, these reforms could pave the way for Vietnam to remove the road from the grey list.
A clear regulatory environment also strengthens investor confidence. Legalized communications businesses and strong compliance standards assured international cryptocurrency businesses, venture capitalists and technology companies. In addition, seamless integration between cryptocurrencies and traditional banking businesses can improve opportunities for capital markets and institutional financing.
Ultimately, Vietnam’s crypto regulation not only addresses the FATF’s concerns, but also enhances its global image as a transparent and innovative economy.