Quick Answer
Yes, Vietnam legalized crypto, effective January 1, 2026.
- A new law recognizes digital assets, taking effect on January 1, 2026.
- Regulations will require anti-money laundering (AML) and cybersecurity compliance.
Legal Status of Crypto in Vietnam
Vietnam's legal stance on cryptocurrency is transitioning from a complex gray area to a regulated framework. For years, using digital currencies as a payment method was explicitly illegal under directives from the State Bank of Vietnam, though regulations for holding them as assets remained largely undefined. This changed when the National Assembly passed the Law on Digital Technology Industry, which formally recognizes and establishes a legal basis for crypto assets. Under this new law, the government will define specific business conditions and enforce compliance with cybersecurity and AML safeguards.
Current Regulations
The cornerstone of Vietnam's current regulatory approach is the Law on Digital Technology Industry, passed in June 2025 and scheduled to take effect on January 1, 2026. This landmark legislation categorizes digital assets into two main types: virtual assets and crypto assets, which are defined by their use of encryption technology. However, these classifications explicitly exclude securities, digital fiat currencies, and other traditional financial instruments. Under the new framework, the government is tasked with defining specific business conditions and oversight, including mandatory anti-money laundering (AML) and cybersecurity measures.
Regulatory Authorities
Several government bodies are involved in shaping and enforcing Vietnam's crypto regulations.
- National Assembly of Vietnam: As the country's highest legislative body, it is responsible for debating and passing laws. It approved the Law on Digital Technology Industry, which establishes the legal foundation for regulating crypto assets.
- State Bank of Vietnam (SBV): The central bank is tasked with helping develop digital asset regulations and ensuring financial stability. Historically, it has prohibited the use of cryptocurrencies as a means of payment and instructed financial institutions to avoid crypto-related transactions.
- Ministry of Finance (MOF): This ministry is responsible for developing a comprehensive legal framework for virtual assets and proposing specific regulations. It has also been directed to prevent securities firms from engaging in the issuance, brokerage, or trading of virtual currencies.
- Ministry of Justice (MOJ): The MOJ provides legal analysis and recommendations on legislation related to virtual currencies. It has reviewed existing laws and offered policy proposals to the government to help shape the new regulatory framework.
- Ministry of Public Security: This ministry handles law enforcement and is tasked with investigating crypto-related financial crimes, fraud, and multi-level marketing schemes. Its police forces have taken enforcement action against crypto scams, including arresting individuals behind a fake mining platform.
Historical Context
Vietnam's crypto journey began in 2017 with Decision 1255, which initiated efforts to create a legal framework. Later that year, the State Bank banned crypto as a payment method. A 2018 directive intensified oversight, tasking ministries with preventing fraud and managing virtual assets. For years, the legal status of crypto as an asset remained ambiguous, despite high adoption rates. The most significant policy shift occurred in June 2025 when the National Assembly passed the Law on Digital Technology Industry. This landmark legislation, effective January 2026, formally recognizes crypto assets, providing legal clarity and aiming to boost Vietnam's digital economy while addressing international anti-money laundering standards.
Compliance Requirements for Businesses in Vietnam
With the new Law on Digital Technology Industry set to take effect, Vietnam's compliance landscape for crypto businesses is shifting from a prohibitive stance to a structured regulatory framework. While the government is still developing detailed guidelines, the law establishes several core requirements based on international standards.
- Anti-Money Laundering (AML) Checks: The new law mandates that businesses implement AML safeguards that align with international norms. This is a direct response to concerns from the Financial Action Task Force (FATF), which placed Vietnam on its ‘gray list’ in 2023. While specific rules are still being drafted by the government, businesses should prepare for standard AML procedures, including customer due diligence, transaction monitoring, and reporting suspicious activities.
- Know Your Customer (KYC) Requirements: Although not explicitly detailed in the law, KYC procedures are a fundamental component of international AML standards. It is expected that the forthcoming government regulations will include specific KYC requirements, such as identity verification and record-keeping for all customers.
- Other Mandatory Procedures: Alongside AML, the law requires robust cybersecurity measures to protect digital assets. Historically, the primary compliance rule was a strict prohibition on using crypto as a payment method, a rule that businesses must still observe until the new framework is fully implemented.
- Government Guidance: The Vietnamese government is tasked with creating the specific regulatory framework for digital assets. The Ministry of Finance is expected to draft these rules by May 2025, ahead of the law taking full effect on January 1, 2026. Until then, businesses should monitor official announcements for detailed compliance instructions.
Why this matters for Cross-Border Payments
Vietnam's formalization of crypto regulations introduces a new layer of complexity for cross-border transactions with India, which maintains its own stringent digital asset rules. For Indian businesses, this will require navigating Vietnam's mandatory AML and KYC checks, adding significant compliance overhead and potential operational delays. The primary pain point will be reconciling the two distinct regulatory frameworks, especially as Vietnam continues to prohibit crypto as a payment method, thus limiting its use for direct trade settlement and creating a dual-compliance burden.
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Notice: This article is provided for informational purposes only and does not constitute legal advice.
FAQs
How will cryptocurrency be taxed in Vietnam?
The new law does not yet specify tax regulations for crypto assets. The Ministry of Finance is expected to release detailed guidance on this matter before the law takes full effect in 2026.
Is crypto mining legal in Vietnam?
Vietnam's new legislation focuses on regulating crypto as an asset but does not explicitly address the legality of mining activities. Further clarification is expected as the government develops more specific regulations for the digital asset sector.
What are the penalties for non-compliance with Vietnam's new crypto laws?
Specific penalties for non-compliance with the new law have not yet been detailed by the government. Businesses should monitor announcements from the Ministry of Finance for forthcoming rules on enforcement and sanctions.
Sources
- Field, James. “Vietnam legalizes 'crypto,' limits AI use under new law.” CoinGeek, 19 June 2025, coingeek.com/vietnam-legalizes-crypto-limits-ai-use-under-new-law/.
- Haqshanas, Amin. “Vietnam Legalizes Crypto, Targets Global Tech Leadership.” Cointelegraph, 15 June 2025, cointelegraph.com/news/vietnam-legalizes-crypto-sets-digital-tech-ambitions.
- Massmann, Oliver. “Vietnam – Bitcoin and Cryptocurrencies – Current situation and Potential Development.” Duane Morris Vietnam, Duane Morris LLP, 23 Sept. 2024, blogs.duanemorris.com/vietnam/2024/09/23/vietnam-bitcoin-and-cryptocurrencies-current-situation-and-potential-development/.
- Rodrigues, Francisco. “Vietnam Passes Landmark Law Recognizing Crypto Assets.” CoinDesk, 16 June 2025, www.coindesk.com/policy/2025/06/16/vietnam-passes-landmark-law-recognizing-crypto-assets.
- “Vietnam & Cryptocurrency | Blockchain & Cryptocurrency Laws & Regulations.” Freeman Law, freemanlaw.com/cryptocurrency/vietnam/.
