Vietnam is the latest country to officially recognise digital assets, with its new Law on Digital Technology Industry, approved on 14 June 2025. The legislation, which also covers initiatives around artificial intelligence (AI), will take effect on 1 January 2026.
Proper Definition of Crypto
According to a local media report, the approved law classifies digital assets into two categories: virtual assets and crypto assets. It defines virtual assets as a form of digital asset used for exchange or investment. Meanwhile, crypto assets are defined as digital assets that rely on encryption technology to validate transactions and ownership.
The legislation also specifies that neither virtual assets nor crypto assets include securities, digital representations of fiat currency, or other financial instruments that already fall under the existing financial laws.
After the legislation comes into effect, the Vietnamese government will be responsible for the classification of digital assets, specifying the criteria for their management and detailing the business conditions.
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The regulatory agency will also need to implement measures to ensure cybersecurity and to prevent money laundering, counter-terrorism financing, and other illegal activities. It should be noted that Vietnam has been on the Financial Action Task Force’s (FATF) grey list since 2023.
Crypto Adoption Remains High
When it comes to crypto adoption, Vietnam is one of the top countries. According to Chainalysis, Vietnam ranked fifth globally in 2024 in terms of overall cryptocurrency adoption, only behind India, Nigeria, and the United States. However, the country topped the list for two consecutive years in 2021 and 2022.
Although crypto adoption has gone mainstream with the launch of exchange-traded funds (ETFs) and institutional demand, the appropriate definition remains vague in many jurisdictions. Meanwhile, last year, the European Union introduced the Markets in Crypto-Assets Regulation (MiCA) to regulate the crypto industry.
The United States, one of the top single markets for crypto and institutions, has yet to introduce any crypto-specific regulations.
This article was written by Arnab Shome at www.financemagnates.com.
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