INSUBCONTINENT EXCLUSIVE:
deficiencies.The law distinguishes between crypto assets (e.g., Bitcoin, Ether) and virtual assets (non-financial digital items), excluding
CBDCs and securities.The law mandates identity checks, transaction monitoring and reporting obligations to detect and prevent digital asset
significant shift in how the country manages digital assets
It represents a broader attempt by Vietnam to improve its financial reputation and exit the Financial Action Task Force (FATF) gray
This includes classifying digital assets, licensing requirements and robust compliance mechanisms aligned with international standards
By regulating its crypto sector, Vietnam aims to address FATF concerns, boost investor confidence and position itself as a digital economy
of Seven, the FATF is a global organization that establishes standards to prevent money laundering, terrorist financing and other threats to
The FATF creates policies and oversees their adoption in member countries
The G7 is an intergovernmental organization comprising seven leading advanced economies: Canada, France, Germany, Italy, Japan, the UK and
and investment environment.Did you know? By complying with FATF rules, Vietnam hopes to attract global VCs and crypto exchanges, turning
inadequate supervision of financial institutions, weak Customer Due Diligence (CDD) and insufficient regulation of virtual asset service
Vietnam must fully implement an FATF action plan
This includes strengthening AML laws, improving regulatory oversight, enhancing CDD and ensuring effective prosecution of financial
to the digital technology industry
initiative.Defined categories: The law separates crypto assets (like Bitcoin, Ether) from virtual assets (non-financial digital items),
enabling more precise risk-based regulation per FATF guidance.Strong incentives: Offers tax breaks, grants and import duty exemptions for
startups, SMEs, and foreign tech investors.Workforce support: Vietnamese digital experts get five years of tax exemption; foreign experts
receive five-year visas and no work permit requirement.AI and digital asset regulation: Introduces a risk-based AI framework and legal rules
for crypto and virtual assets.Regulatory sandbox: Allows controlled testing of blockchain, DeFi and virtual asset technologies to foster
items used for exchange or investment
Digital assets that use encryption or blockchain technologies to manage issuance, transfer and storage
that enables regulated use of these assets while differentiating these categories from mainstream financial products
It tasks the government with licensing, oversight and operational guidelines for each category, signaling a move toward transparency and
compliance.The law excludes securities, CBDCs, and traditional financial instruments from these categories.Key changes for crypto startups
include legal recognition, a framework for regulation and tax incentives
The law also includes provisions for pilot sandbox mechanisms for virtual asset products and services
authorities to collaborate internationally on digital asset fraud, improving cross-border investigations and curbing global crypto crime.How
push for clear national regulation of digital assets.Defined categories: The law separates crypto assets (like Bitcoin, Ether) from virtual
assets (non-financial digital items), enabling more precise risk-based regulation per FATF guidance.AML and CFT integration: Crypto
exchanges and wallet providers will fall under state supervision, helping Vietnam address FATF concerns about weak customer due diligence
and illicit finance.Stablecoins excluded: Fiat-backed stablecoins are regulated separately under financial laws, ensuring consistent
startups and help formalize the sector, making it easier to monitor transactions, enforce KYC and reduce capital flight.These reforms
with global standards.The legislation also empowers the government to define licensing rules, asset classification and oversight mechanisms,
authorities against digital asset fraudThe law provides Vietnamese authorities with a clear legal framework to investigate, prosecute and
deter digital asset fraud
Previously, the absence of legal tools hampered enforcement efforts
identity checks, transaction monitoring and reporting obligations.Provisions of the law facilitate greater cooperation with international
Vietnam facilitates collaboration with foreign authorities on cross-border investigations by aligning its crypto regulations with global
By addressing legal gaps and enhancing regulatory coordination, Vietnam has bolstered its national enforcement efforts and reputation in the
part of its ambition to become a digital technology hub in Southeast Asia
the government is also investing in digital education through vocational programs, university-industry collaboration and tech
By defining virtual and crypto assets and enforcing rules on licensing, AML/KYC, cybersecurity and transaction oversight, the country has
tightened AML rules, updated risk assessments, standardized reporting practices, and strengthened CDD under revised Circular 09
environment also enhances investor confidence
Legalized exchange operations and strong compliance standards reassure international crypto businesses, venture capitalists and tech firms
Moreover, seamless integration between crypto and traditional banking improves access to capital markets and institutional
innovation-friendly economy.This article does not contain investment advice or recommendations
Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
