The law aims to attract investment and modernize Vietnam’s economy.
Crypto adoption is rapidly scaling up this year, as news updates abound about countries opening doors to digital assets, accepting their utility, and pronouncing their legality.
More recently, Vietnam’s National Assembly green lighted the Law on Digital Technology Industry. Under this law, crypto assets have been legalized.
Under the newly passed Digital Tech Law in Vietnam, digital assets have been classified as “virtual assets” or “crypto assets.” Digital representations of fiat currencies, securities, or other financial instruments are not included under this definition within the said Act.
Under this law, crypto assets refer to encrypted digital tokens used for the transfer and storage of value, while virtual assets cover broader digital representations with potential utility in virtual environments.
Prior to the law taking effect in 2006, specific regulations on business activities, conditions, and licensing processes related to the mentioned crypto and virtual asset classes.
A National Assembly spokesperson stated,
“This law is designed to protect users, promote transparency, and create a legal foundation for a responsible digital economy in Vietnam.”
Cybersecurity is a core pillar of the Digital Technology Industry Law. Companies dealing with digital and crypto assets will be required to maintain systems that prevent unauthorized access, data breaches, and fraudulent transactions.
These requirements are in line with Vietnam’s commitments to global data and financial integrity standards.
In addition, the new law emphasizes Vietnam’s intent to exit the Financial Action Task Force (FATF) “gray list,” where it has been placed since 2023. The adoption of stricter digital asset regulations and transparent oversight mechanisms is a key component of meeting the FATF’s conditions for removal.
Authorities believe that aligning digital asset governance with global standards will help foster investor confidence and encourage legitimate cross-border digital transactions.
The Ministry of Public Security has introduced NDAChain, a national blockchain platform designed to support secure, decentralized applications.
NDAChain uses a Permissioned Blockchain model with a Proof of Authority (PoA) consensus mechanism.
The infrastructure supports fast and secure data transactions and incorporates Zero-Knowledge Proof (ZKP) technology to safeguard user privacy while verifying identities.
In support of digital identity management, the national Decentralized Identifier (NDA DID) system allows individuals and organizations to control their identity information independently.
It follows the Decentralized Identity model and aims to prevent fraud, protect privacy, and support trusted digital services.
The digital identity initiative is expected to play a crucial role in Vietnam’s broader digital transformation. It enables secure digital interactions without reliance on centralized verification authorities.
As per the crypto news update with respect to the new Vietnam law legalizing crypto assets, companies in the core digital technology industries wil lbe incentivized to expand their innovation initiatives.
These are exemptions of taxes, advantages of land use, and fund granting of research and development exercises.
Some of the companies eligible to benefit are those labouring in blockchain applications and infrastructure of digital assets.
To shore up such initiatives, local governments are compelled to introduce funding and training programs that will result in a skilled workforce.
Educational institutions and learning facilities will implement the digital technology and knowledge base of cybersecurity at the national level.
Such modifications are expected to equip young professionals with the skills to offer services in the expanding digital industry.
According to the Ministry of Information and Communications, “The focus on education and training ensures long-term growth in digital skills and supports the sustainability of the industry.”
Having enacted the Digital Technology Industry Law, Vietnam will aim to become an attractive location in the region of Southeast Asia for digital asset business ventures.
The passing of the law removes uncertainty about digital asset business practices that had existed since the beginning, and establishes a secure and stable legal basis for innovation and investment.
With the legalization of crypto assets and regulatory monitoring, Vietnam will receive an influx of foreign investment, which will help national digital startups to grow.
The framework also enhances the continued quest of the country to establish its sovereign digital infrastructure that is in line with national and international standards.
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