Key takeaways
On June 14, 2025, Vietnam’s Nationwide Meeting accepted the Legislation on Digital Expertise Trade, efficient Jan. 1, 2026.
Vietnam’s crypto regulation is a part of a broader effort to satisfy FATF requirements after being gray-listed in 2023 resulting from AML/CFT deficiencies.
The regulation distinguishes between crypto belongings (e.g., Bitcoin, Ether) and digital belongings (non-financial digital objects), excluding CBDCs and securities.
The regulation mandates id checks, transaction monitoring and reporting obligations to detect and stop digital asset fraud, addressing enforcement gaps.
On June 14, 2025, Vietnam’s Nationwide Meeting handed the Legislation on Digital Expertise Trade, signaling a big shift in how the nation manages digital belongings. Efficient Jan. 1, 2026, this regulation introduces clear rules for Vietnam’s fast-growing cryptocurrency sector. It represents a broader try by Vietnam to enhance its monetary repute and exit the Monetary Motion Activity Drive (FATF) grey listing.
With this regulation, Vietnam has applied a complete authorized framework for digital belongings. This consists of classifying digital belongings, licensing necessities and strong compliance mechanisms aligned with worldwide requirements. By regulating its crypto sector, Vietnam goals to handle FATF considerations, increase investor confidence and place itself as a digital financial system hub in Southeast Asia.
This text explores how crypto reform helps Vietnam’s FATF comeback technique. It digs into Vietnamese crypto regulation and explains the way it addresses the FATF’s considerations.
What’s the FATF
Based in 1989 by the G7, or the Group of Seven, the FATF is a world group that establishes requirements to stop cash laundering, terrorist financing and different threats to the monetary system. The FATF creates insurance policies and oversees their adoption in member international locations. The G7 is an intergovernmental group comprising seven main superior economies: Canada, France, Germany, Italy, Japan, the UK and the US.
The FATF supplies suggestions to form nationwide legal guidelines and assesses compliance by means of peer evaluations. Nations that don’t meet FATF requirements could also be positioned on a “grey listing” or “blacklist,” which may hurt their world monetary repute and funding setting.
Do you know? By complying with FATF guidelines, Vietnam hopes to draw world VCs and crypto exchanges, turning regulatory readability into an financial growth device.
Vietnam’s FATF grey listing standing and steps towards monetary reform
In June 2023, Vietnam was positioned on the FATF grey listing, formally termed “jurisdictions below elevated monitoring,” after agreeing to handle important deficiencies in its Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) measures.
The FATF cited points akin to insufficient supervision of economic establishments, weak Buyer Due Diligence (CDD) and inadequate regulation of digital asset service suppliers. It additionally raised considerations about Vietnam’s efforts to fight illicit financing tied to weapons proliferation.
To be faraway from the grey listing, Vietnam should totally implement an FATF motion plan. This consists of strengthening AML legal guidelines, enhancing regulatory oversight, enhancing CDD and making certain efficient prosecution of economic crimes.
The FATF screens progress by means of updates and on-site visits. As soon as compliance is demonstrated, member states vote in a plenary session to resolve on elimination, signaling renewed belief within the nation’s monetary integrity.
Vietnam’s Legislation on Digital Expertise Trade
Vietnam grew to become the world’s first nation to go a standalone regulation devoted to the digital expertise {industry}. The regulation was handed in June 2025; implementation begins in January 2026.
Listed here are the important thing highlights of Vietnam’s Legislation on Digital Expertise Trade (Digital Expertise Legislation):
Formidable development: Goals to create 150,000 digital tech companies by 2035 below the “Make in Vietnam” initiative.
Outlined classes: The regulation separates crypto belongings (like Bitcoin, Ether) from digital belongings (non-financial digital objects), enabling extra exact risk-based regulation per FATF steerage.
Robust incentives: Gives tax breaks, grants and import obligation exemptions for startups, SMEs, and overseas tech traders.
Workforce assist: Vietnamese digital specialists get 5 years of tax exemption; overseas specialists obtain five-year visas and no work allow requirement.
AI and digital asset regulation: Introduces a risk-based AI framework and authorized guidelines for crypto and digital belongings.
Regulatory sandbox: Permits managed testing of blockchain, DeFi and digital asset applied sciences to foster innovation.
A more in-depth have a look at Vietnam’s crypto regulation
The regulation divides digital belongings into two classes:
Digital belongings: Non-financial digital objects used for change or funding. These exclude securities, central bank digital currencies (CBDCs), fiat currencies and conventional monetary devices.
Crypto belongings: Digital belongings that use encryption or blockchain applied sciences to handle issuance, switch and storage. Like digital belongings, they don’t embody securities or CBDCs.
This classification of digital belongings facilitates a structured authorized framework that permits regulated use of those belongings whereas differentiating these classes from mainstream monetary merchandise. It duties the federal government with licensing, oversight and operational tips for every class, signaling a transfer towards transparency and compliance.
The regulation excludes securities, CBDCs, and conventional monetary devices from these classes.
Key adjustments for crypto startups embody authorized recognition, a framework for regulation and tax incentives. The regulation additionally consists of provisions for pilot sandbox mechanisms for digital asset services. Tax exemptions, subsidies and workforce coaching applications can be found for blockchain startups.
Do you know? Vietnam’s crypto regulation permits authorities to collaborate internationally on digital asset fraud, enhancing cross-border investigations and curbing world crypto crime.
How Vietnam addressed FATF considerations
Greater than only a home milestone, Vietnam’s Legislation on the Digital Expertise Trade represents a important step towards aligning Vietnam’s digital asset sector with FATF requirements on AML and Countering the Financing of Terrorism.
Key highlights embody:
Crypto formally legalized: Vietnam’s 2025 regulation ends authorized ambiguity by recognizing crypto possession and use, aligning with FATF’s push for clear nationwide regulation of digital belongings.
Outlined classes: The regulation separates crypto belongings (like Bitcoin, Ether) from digital belongings (non-financial digital objects), enabling extra exact risk-based regulation per FATF steerage.
AML and CFT integration: Crypto exchanges and pockets suppliers will fall below state supervision, serving to Vietnam deal with FATF considerations about weak customer due diligence and illicit finance.
Stablecoins excluded: Fiat-backed stablecoins are regulated separately below monetary legal guidelines, making certain constant oversight and decreasing systemic threat according to FATF’s risk-based strategy.
Regulatory readability for companies: Clear guidelines appeal to crypto startups and assist formalize the sector, making it simpler to watch transactions, implement KYC and cut back capital flight.
These reforms immediately assist Vietnam’s objective of exiting the FATF grey listing by establishing a clear, managed crypto setting that’s compliant with world requirements.
The laws additionally empowers the federal government to outline licensing guidelines, asset classification and oversight mechanisms, making certain crypto service suppliers and monetary establishments function inside a regulated setting.
Via these measures, Vietnam indicators its dedication to assembly FATF requirements and regaining worldwide belief in its monetary ecosystem.
Vietnam’s new crypto regulation arms authorities towards digital asset fraud
The regulation supplies Vietnamese authorities with a transparent authorized framework to analyze, prosecute and deter digital asset fraud. Beforehand, the absence of authorized instruments hampered enforcement efforts. The regulation introduces compliance obligations akin to id checks, transaction monitoring and reporting duties.
Two current fraud instances spotlight the urgency of those reforms:
In February 2025, authorities arrested 4 people behind BitMiner, a faux crypto mining scheme that defrauded 200 victims of over 4 billion Vietnamese dong (~$157,300).
In December 2024, the Hanoi police disrupted a rip-off involving Million Smiles, which used misleading advertisements to advertise a cryptocurrency referred to as QFS, leading to losses of about $1.17 million.
The regulation handed by Vietnam’s Nationwide Meeting consists of AML and CFT measures, requiring crypto service suppliers to implement compliance procedures akin to id checks, transaction monitoring and reporting obligations.
Provisions of the regulation facilitate higher cooperation with worldwide regulators. Vietnam facilitates collaboration with overseas authorities on cross-border investigations by aligning its crypto rules with world requirements.
This regulation is especially vital for addressing transnational crypto crimes, the place belongings and suspects typically cross jurisdictions. By addressing authorized gaps and enhancing regulatory coordination, Vietnam has bolstered its nationwide enforcement efforts and repute within the world monetary group.
Do you know? Being on the FATF grey listing doesn’t simply harm repute; it will probably make overseas banks hesitant to work with home establishments, limiting capital movement and investments.
Opening the door to digital innovation
Vietnam’s new crypto regulation is a part of its ambition to grow to be a digital expertise hub in Southeast Asia. By formally recognizing crypto belongings, the federal government welcomes innovation and attracts world startups and traders.
The regulation affords important incentives for tech firms, together with:
Tax reductions for blockchain, AI and chip design companies.
Backed entry to digital campuses and innovation parks.
Grants and infrastructure assist for R&D in semiconductors and cloud expertise.
To assist this ecosystem, the federal government can be investing in digital schooling by means of vocational applications, university-industry collaboration and tech apprenticeships, making certain a talented workforce for the long run.
These mixed efforts intention to determine Vietnam as a regional chief in digital innovation.
Vietnam’s world picture and future FATF assessment
Vietnam’s cryptocurrency regulation is central to its FATF compliance technique. By defining digital and crypto belongings and imposing guidelines on licensing, AML/KYC, cybersecurity and transaction oversight, the nation has aligned itself with FATF Advice 15, one of many key points cited throughout its grey itemizing.
In parallel, the State Financial institution of Vietnam has tightened AML guidelines, up to date threat assessments, standardized reporting practices, and strengthened CDD below revised Round 09. If totally applied by January 2026, these reforms may pave the best way for Vietnam’s elimination from the grey listing.
A transparent regulatory setting additionally enhances investor confidence. Legalized change operations and robust compliance requirements reassure worldwide crypto companies, enterprise capitalists and tech companies. Furthermore, seamless integration between crypto and conventional banking improves entry to capital markets and institutional finance.
Finally, Vietnam’s crypto regulation not solely addresses FATF considerations but additionally enhances its world picture as a clear and innovation-friendly financial system.
This text doesn’t include funding recommendation or suggestions. Each funding and buying and selling transfer includes threat, and readers ought to conduct their very own analysis when making a call.
