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Vietnam has recently made significant strides in the realm of digital finance by officially legalising cryptocurrencies through its newly approved technology law. This landmark legislation, titled the Law on Digital Technology Industry, establishes a clear legal framework for digital assets and their associated technologies, coming into full effect on January 1, 2026.
Key Features of the Law
The law introduces a classification system for digital assets, distinguishing between two categories: cryptocurrencies and virtual assets. However, it is important to note that this classification does not include traditional financial instruments such as securities or central bank digital currencies (CBDCs).
In addition to addressing the legal status of digital currencies, the law aims to attract foreign investment by introducing incentives for companies involved in semiconductor research and development (R&D) and supply chain localisation. This strategic move is designed to enhance Vietnam’s position in high-value segments of the semiconductor industry—vital for technological advancement and self-sufficiency.
Centralised Oversight of Digital Assets
According to reports from local media outlet The Investor, the Vietnamese central government will spearhead the implementation of this law, detailing asset classifications, business regulations, and compliance frameworks. Regulatory bodies will also be tasked with enforcing critical measures related to cybersecurity, anti-money laundering (AML), and efforts to combat terrorism financing, amongst other security protocols.
This initiative aligns with Vietnam’s ongoing attempts to address concerns raised by the Financial Action Task Force (FATF), which highlighted deficiencies in the country’s AML frameworks. Following the identification of these regulatory shortcomings, Vietnam was placed on the FATF’s grey list in 2023. The reforms introduced by this new law could potentially facilitate the removal of the country from FATF’s monitoring lists, demonstrating a commitment to improve compliance standards.
Industry Benefits and Incentives
The legislation not only focuses on digital assets but also outlines specific advantages for sectors deemed a priority, such as artificial intelligence (AI), semiconductor production, and AI data centres. Individuals and companies operating in these high-growth areas can expect perks such as access to capital, tax exemptions, and concessions related to land use, thereby fostering a pro-business environment aimed at advancing Vietnam’s technological landscape.
Conclusion
As Vietnam prepares to embrace digital currencies through its new legal framework, it positions itself strategically within the global economy. This bold move not only addresses regulatory gaps that have previously hindered its financial sector but also sets the stage for growth and innovation in high-tech industries. Legalising cryptocurrencies marks a significant step forward in the nation’s technological evolution and economic resilience, indicating a future where digital assets play a crucial role in the national and global economy.
In summary, Vietnam’s progressive actions towards legalising and regulating digital assets demonstrate an eagerness to engage with the rapidly evolving financial landscape while ensuring compliance with international standards.
