Vietnam has officially embarked on a cryptocurrency regulatory framework by approving its first law on the digital asset industry. The Vietnamese National Assembly passed the 'Digital Technology Industry Law' on June 14th, which is set to take effect on January 1st, 2026. This measure is part of Vietnam's strategy to meet the Financial Action Task Force (FATF) recommendation standards and strengthen its anti-money laundering and counter-terrorist financing (AML/CFT) system.
In particular, this law clearly distinguishes between definitions of cryptocurrencies and other digital assets. Cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) are classified as 'crypto assets', while virtual items without financial functions such as game items or digital collectibles are separately defined as 'virtual assets'. Central Bank Digital Currencies (CBDC) and digital securities are excluded from the scope of this law.
Through this law, the Vietnamese government requires cryptocurrency exchanges and companies to implement rigorous supervision, including Know Your Customer (KYC), transaction monitoring, and reporting obligations. The aim is to strengthen investor protection and eliminate fraud and money laundering activities involving digital assets. Previously, Vietnam faced difficulties in law enforcement due to the lack of digital asset regulations, making such institutional improvements an urgent task.
This regulatory introduction is interpreted as a measure to restore trust after Vietnam was placed on the FATF's 'grey list' in 2023. The FATF had pointed out significant shortcomings in Vietnam's AML/CFT areas, which impacted the country's reputation and foreign investment attraction. By establishing a regulation system that meets international standards, Vietnam clearly intends to escape FATF monitoring and emerge as a digital economy hub.
This legislation is intertwined with the Vietnamese government's digital technology development strategy. By establishing a clear legal foundation for emerging industries, including digital assets, Vietnam aims to strengthen its position as a technology innovation hub in Southeast Asia. Such a systematic approach is expected to restore overseas investors' confidence and accelerate Vietnam's digital transformation.
Real-time news...Go to Token Post Telegram
<Copyright ⓒ TokenPost, Unauthorized reproduction and redistribution prohibited>
