Key takeaways
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On June 14, 2025, Vietnam’s Nationwide Meeting permitted the Legislation on Digital Know-how Business, efficient Jan. 1, 2026.
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Vietnam’s crypto regulation is a part of a broader effort to fulfill FATF requirements after being gray-listed in 2023 because of AML/CFT deficiencies.
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The regulation distinguishes between crypto property (e.g., Bitcoin, Ether) and digital property (non-financial digital objects), excluding CBDCs and securities.
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The regulation mandates identification checks, transaction monitoring and reporting obligations to detect and forestall digital asset fraud, addressing enforcement gaps.
On June 14, 2025, Vietnam’s Nationwide Meeting handed the Legislation on Digital Know-how Business, signaling a big shift in how the nation manages digital property. 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 popularity and exit the Monetary Motion Activity Power (FATF) grey record.
With this regulation, Vietnam has carried out a complete authorized framework for digital property. This consists of classifying digital property, licensing necessities and sturdy compliance mechanisms aligned with worldwide requirements. By regulating its crypto sector, Vietnam goals to deal with FATF issues, 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 issues.
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 nations. The G7 is an intergovernmental group comprising seven main superior economies: Canada, France, Germany, Italy, Japan, the UK and the US.
The FATF gives suggestions to form nationwide legal guidelines and assesses compliance by way of peer critiques. International locations that don’t meet FATF requirements could also be positioned on a “grey record” or “blacklist,” which may hurt their world monetary popularity and funding surroundings.
Do you know? By complying with FATF guidelines, Vietnam hopes to draw world VCs and crypto exchanges, turning regulatory readability into an financial improvement device.
Vietnam’s FATF grey record standing and steps towards monetary reform
In June 2023, Vietnam was positioned on the FATF grey record, formally termed “jurisdictions underneath elevated monitoring,” after agreeing to deal with vital deficiencies in its Anti-Cash Laundering (AML) and Countering the Financing of Terrorism (CFT) measures.
The FATF cited points equivalent to insufficient supervision of economic establishments, weak Buyer Due Diligence (CDD) and inadequate regulation of digital asset service suppliers. It additionally raised issues about Vietnam’s efforts to fight illicit financing tied to weapons proliferation.
To be faraway from the grey record, Vietnam should totally implement an FATF motion plan. This consists of strengthening AML legal guidelines, bettering regulatory oversight, enhancing CDD and making certain efficient prosecution of economic crimes.
The FATF screens progress by way of updates and on-site visits. As soon as compliance is demonstrated, member states vote in a plenary session to resolve on removing, signaling renewed belief within the nation’s monetary integrity.
Vietnam’s Legislation on Digital Know-how Business
Vietnam grew to become the world’s first nation to move a standalone regulation devoted to the digital know-how {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 Know-how Business (Digital Know-how Legislation):
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Formidable development: Goals to create 150,000 digital tech corporations by 2035 underneath the “Make in Vietnam” initiative.
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Outlined classes: The regulation separates crypto property (like Bitcoin, Ether) from digital property (non-financial digital objects), enabling extra exact risk-based regulation per FATF steerage.
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Robust incentives: Affords tax breaks, grants and import obligation exemptions for startups, SMEs, and overseas tech traders.
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Workforce help: Vietnamese digital consultants get 5 years of tax exemption; overseas consultants obtain five-year visas and no work allow requirement.
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AI and digital asset regulation: Introduces a risk-based AI framework and authorized guidelines for crypto and digital property.
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Regulatory sandbox: Permits managed testing of blockchain, DeFi and digital asset applied sciences to foster innovation.
A better take a look at Vietnam’s crypto regulation
The regulation divides digital property into two classes:
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Digital property: Non-financial digital objects used for alternate or funding. These exclude securities, central financial institution digital currencies (CBDCs), fiat currencies and conventional monetary devices.
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Crypto property: Digital property that use encryption or blockchain applied sciences to handle issuance, switch and storage. Like digital property, they don’t embody securities or CBDCs.
This classification of digital property facilitates a structured authorized framework that permits regulated use of those property 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 packages can be found for blockchain startups.
Do you know? Vietnam’s crypto regulation permits authorities to collaborate internationally on digital asset fraud, bettering cross-border investigations and curbing world crypto crime.
How Vietnam addressed FATF issues
Greater than only a home milestone, Vietnam’s Legislation on the Digital Know-how Business represents a crucial step towards aligning Vietnam’s digital asset sector with FATF requirements on AML and Countering the Financing of Terrorism.
Key highlights embody:
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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 property.
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Outlined classes: The regulation separates crypto property (like Bitcoin, Ether) from digital property (non-financial digital objects), enabling extra exact risk-based regulation per FATF steerage.
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AML and CFT integration: Crypto exchanges and pockets suppliers will fall underneath state supervision, serving to Vietnam deal with FATF issues about weak buyer due diligence and illicit finance.
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Stablecoins excluded: Fiat-backed stablecoins are regulated individually underneath monetary legal guidelines, making certain constant oversight and lowering systemic threat in keeping with FATF’s risk-based method.
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Regulatory readability for companies: Clear guidelines entice crypto startups and assist formalize the sector, making it simpler to watch transactions, implement KYC and cut back capital flight.
These reforms immediately help Vietnam’s objective of exiting the FATF grey record by establishing a clear, managed crypto surroundings 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 surroundings.
By these measures, Vietnam alerts 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 gives Vietnamese authorities with a transparent authorized framework to research, prosecute and deter digital asset fraud. Beforehand, the absence of authorized instruments hampered enforcement efforts. The regulation introduces compliance obligations equivalent to identification checks, transaction monitoring and reporting duties.
Two latest fraud circumstances spotlight the urgency of those reforms:
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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).
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In December 2024, the Hanoi police disrupted a rip-off involving Million Smiles, which used misleading adverts 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 equivalent to identification 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 necessary for addressing transnational crypto crimes, the place property and suspects usually cross jurisdictions. By addressing authorized gaps and enhancing regulatory coordination, Vietnam has bolstered its nationwide enforcement efforts and popularity within the world monetary neighborhood.
Do you know? Being on the FATF grey record doesn’t simply harm popularity; it could actually make overseas banks hesitant to work with home establishments, limiting capital circulate and investments.
Opening the door to digital innovation
Vietnam’s new crypto regulation is a part of its ambition to change into a digital know-how hub in Southeast Asia. By formally recognizing crypto property, the federal government welcomes innovation and attracts world startups and traders.
The regulation gives vital incentives for tech corporations, together with:
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Tax reductions for blockchain, AI and chip design corporations.
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Backed entry to digital campuses and innovation parks.
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Grants and infrastructure help for R&D in semiconductors and cloud know-how.
To help this ecosystem, the federal government can be investing in digital training by way of vocational packages, university-industry collaboration and tech apprenticeships, making certain a talented workforce for the long run.
These mixed efforts purpose to determine Vietnam as a regional chief in digital innovation.
Vietnam’s world picture and future FATF evaluation
Vietnam’s cryptocurrency regulation is central to its FATF compliance technique. By defining digital and crypto property and imposing guidelines on licensing, AML/KYC, cybersecurity and transaction oversight, the nation has aligned itself with FATF Suggestion 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 underneath revised Round 09. If totally carried out by January 2026, these reforms might pave the best way for Vietnam’s removing from the grey record.
A transparent regulatory surroundings additionally enhances investor confidence. Legalized alternate operations and powerful compliance requirements reassure worldwide crypto companies, enterprise capitalists and tech corporations. Furthermore, seamless integration between crypto and conventional banking improves entry to capital markets and institutional finance.
In the end, Vietnam’s crypto regulation not solely addresses FATF issues but in addition enhances its world picture as a clear and innovation-friendly financial system.
This text doesn’t comprise funding recommendation or suggestions. Each funding and buying and selling transfer entails threat, and readers ought to conduct their very own analysis when making a choice.
