Key takeaways
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On June 14, 2025, Vietnam’s Nationwide Meeting permitted the Regulation on Digital Expertise Business, efficient Jan. 1, 2026.
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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.
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The regulation distinguishes between crypto belongings (e.g., Bitcoin, Ether) and digital belongings (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 stop digital asset fraud, addressing enforcement gaps.
On June 14, 2025, Vietnam’s Nationwide Meeting handed the Regulation on Digital Expertise Business, signaling a major 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 popularity and exit the Monetary Motion Activity Pressure (FATF) grey record.
With this regulation, Vietnam has carried out a complete authorized framework for digital belongings. This contains classifying digital belongings, licensing necessities and strong compliance mechanisms aligned with worldwide requirements. By regulating its crypto sector, Vietnam goals to deal with FATF considerations, enhance 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 worldwide group that establishes requirements to forestall 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 offers suggestions to form nationwide legal guidelines and assesses compliance by means of peer critiques. Nations 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 instrument.
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 corresponding to insufficient supervision of monetary 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 record, Vietnam should totally implement an FATF motion plan. This contains strengthening AML legal guidelines, bettering regulatory oversight, enhancing CDD and guaranteeing efficient prosecution of monetary 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 removing, signaling renewed belief within the nation’s monetary integrity.
Vietnam’s Regulation on Digital Expertise 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 below are the important thing highlights of Vietnam’s Regulation on Digital Expertise Business (Digital Expertise Regulation):
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Bold progress: Goals to create 150,000 digital tech companies by 2035 underneath the “Make in Vietnam” initiative.
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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.
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Robust incentives: Presents tax breaks, grants and import obligation exemptions for startups, SMEs, and overseas tech traders.
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Workforce assist: Vietnamese digital specialists get 5 years of tax exemption; overseas specialists 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 belongings.
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Regulatory sandbox: Permits managed testing of blockchain, DeFi and digital asset applied sciences to foster innovation.
A better have a look at Vietnam’s crypto regulation
The regulation divides digital belongings into two classes:
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Digital belongings: Non-financial digital objects used for trade or funding. These exclude securities, central financial institution digital currencies (CBDCs), fiat currencies and conventional monetary devices.
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Crypto belongings: Digital belongings that use encryption or blockchain applied sciences to handle issuance, switch and storage. Like digital belongings, they don’t embrace securities or CBDCs.
This classification of digital belongings facilitates a structured authorized framework that allows 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 modifications for crypto startups embrace authorized recognition, a framework for regulation and tax incentives. The regulation additionally contains provisions for pilot sandbox mechanisms for digital asset services and products. 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, bettering cross-border investigations and curbing world crypto crime.
How Vietnam addressed FATF considerations
Greater than only a home milestone, Vietnam’s Regulation on the Digital Expertise Business represents a vital step towards aligning Vietnam’s digital asset sector with FATF requirements on AML and Countering the Financing of Terrorism.
Key highlights embrace:
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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 belongings.
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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.
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AML and CFT integration: Crypto exchanges and pockets suppliers will fall underneath state supervision, serving to Vietnam deal with FATF considerations about weak buyer due diligence and illicit finance.
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Stablecoins excluded: Fiat-backed stablecoins are regulated individually underneath monetary legal guidelines, guaranteeing constant oversight and lowering systemic threat in step with FATF’s risk-based method.
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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 aim 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, guaranteeing crypto service suppliers and monetary establishments function inside a regulated surroundings.
By means of 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 in opposition to digital asset fraud
The regulation offers 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 corresponding 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 known as QFS, leading to losses of about $1.17 million.
The regulation handed by Vietnam’s Nationwide Meeting contains AML and CFT measures, requiring crypto service suppliers to implement compliance procedures corresponding to identification checks, transaction monitoring and reporting obligations.
Provisions of the regulation facilitate larger 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 popularity within the world monetary group.
Do you know? Being on the FATF grey record doesn’t simply damage popularity; it may well 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 turn into a digital know-how hub in Southeast Asia. By formally recognizing crypto belongings, 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 companies.
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Sponsored entry to digital campuses and innovation parks.
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Grants and infrastructure assist for R&D in semiconductors and cloud know-how.
To assist this ecosystem, the federal government can also be investing in digital schooling by means of vocational applications, university-industry collaboration and tech apprenticeships, guaranteeing a talented workforce for the longer term.
These mixed efforts intention 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 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 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 trade operations and powerful 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 comprise 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.