On June 14, 2025, Vietnam’s National Assembly passed the groundbreaking Law on the Digital Technology Industry (DTI Law), set to take effect January 1, 2026, formally legalizing digital assets, including virtual and crypto assets. As the first country to enact a standalone law dedicated to the digital technology sector, Vietnam is poised to become a global leader in blockchain innovation and digital transformation. At the US-ASEAN Digital Asset Council, we celebrate this milestone and see immense potential for Vietnam to drive economic growth and regional collaboration. Here’s why this step matters and what the Vietnamese government should prioritize next.
Positive Effects of Legalizing Digital Assets
Boosting Economic Growth and Innovation Vietnam ranks seventh globally in cryptocurrency ownership, with 17 million crypto holders and $105 billion in capital inflows from 2023–2024. The DTI Law’s recognition of digital assets as property under the Civil Code unlocks new opportunities for blockchain-based businesses, from DeFi platforms to NFT marketplaces. By providing tax incentives for AI, semiconductors, and digital infrastructure, the law fosters a vibrant ecosystem, attracting foreign direct investment (FDI) and talent. This aligns with Vietnam’s goal to grow its digital economy to 20% of GDP by 2030.
Enhancing Investor Confidence and Market Stability The DTI Law mandates cybersecurity and Anti-Money Laundering (AML) protocols aligned with Financial Action Task Force (FATF) standards, addressing Vietnam’s gray list status since 2023. Clear classifications—excluding securities and digital fiat—reduce ambiguity, enabling licensed crypto service providers to operate transparently. This builds trust, as seen in mature markets like Singapore, where platforms like Coinbase thrive under robust regulation.
Combating Fraud and Protecting Consumers Vietnam has faced significant crypto scams, such as the $400 million Matrix Chain fraud and the $1.17 million Million Smiles scheme. The DTI Law empowers law enforcement with tools to prosecute fraud, while the regulatory sandbox (2-year testing period) allows controlled innovation, minimizing risks for consumers and businesses. This balance of innovation and oversight is critical for sustainable growth.
Positioning Vietnam as a Blockchain Hub With a regulatory framework for AI, IoT, and blockchain, Vietnam signals its ambition to lead Asia’s digital tech landscape. The law’s pilot programs, like the planned digital asset exchange by March 2025, demonstrate proactive governance. As a hub for US-ASEAN collaboration, Vietnam can attract partnerships with global exchanges like Bybit, which met with the Finance Minister in April 2025.
Next Steps for the Vietnamese Government
To capitalize on this momentum, the Vietnamese government should focus on these strategic priorities:
Finalize Detailed Implementation Frameworks The Ministry of Finance (MOF) and State Bank of Vietnam (SBV) must swiftly develop decrees outlining business conditions, licensing, and oversight for crypto service providers, as mandated by the DTI Law. Clear rules for trading platforms, custody services, and asset issuance, expected by July 1, 2026, will ensure smooth integration into financial centers. Engaging stakeholders, including the Vietnam Blockchain Association, can align regulations with industry needs.
Expand the Regulatory Sandbox The 2-year sandbox mechanism is a strong start, but expanding its scope to include more blockchain use cases (e.g., supply chain, remittances) will spur innovation. The government should streamline application processes and offer incentives like tax breaks for sandbox participants, drawing from Singapore’s successful model. This will attract startups and multinationals, boosting FDI.
Strengthen AML and Cybersecurity Measures To exit the FATF gray list, Vietnam must enforce robust AML and cybersecurity protocols. The MOF should collaborate with global exchanges (e.g., Binance, Kraken) to adopt best practices, such as KYC and transaction monitoring. Training law enforcement on blockchain forensics, as seen in recent scam crackdowns, will further deter fraud.
Integrate Digital Assets into Financial Systems Piloting crypto asset markets, as proposed in the Draft Crypto Pilot Resolution, should include stablecoin trials and cross-border payment systems. The SBV could explore central bank digital currency (CBDC) integration, leveraging Vietnam’s high remittance inflows ($13 billion annually). This would enhance financial inclusion and compete with regional leaders like Thailand.
Foster Regional Collaboration Vietnam should deepen ties with ASEAN neighbors through platforms like the US-ASEAN Digital Asset Council. Sharing sandbox insights and aligning AML standards with Singapore and Thailand will create a cohesive regional blockchain ecosystem. Hosting ASEAN blockchain summits can position Vietnam as a convener, amplifying its global influence.
The US-ASEAN Digital Asset Council’s Role
As Vietnam embraces digital assets, the US-ASEAN Digital Asset Council is committed to supporting its journey. We aim to facilitate partnerships between Vietnamese regulators, businesses, and US stakeholders, leveraging our expertise in blockchain policy and innovation. By advocating for sandbox expansion and AML best practices, we can help Vietnam realize its vision of becoming a blockchain leader by 2030.
Vietnam’s DTI Law is a bold leap toward a digital future, balancing innovation with stability. As the government refines its framework, the US-ASEAN Digital Asset Council stands ready to collaborate, ensuring Vietnam’s digital economy thrives on the global stage. Let’s build this future together.
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