Vietnam’s government has passed a new law that officially recognizes cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH), as well as other digital assets.
The legislation, called the “Digital Technology Industry Law,” moves Vietnam towards both regulating and promoting the cryptocurrency sector.
However, the new law doesn’t fully take effect until Jan. 1, 2026.
The legislation outlines a framework for managing crypto and digital assets, and fostering blockchain innovation and technology within the Asian nation.
The legal recognition of crypto also helps Vietnam to tackle money laundering and the financing of terrorism using cryptocurrencies.
Currently, Vietnam is viewed by international law enforcement as having insufficient anti-money laundering controls when it comes to Bitcoin and other crypto.
Vietnam’s legislation categorizes digital assets into two groups: virtual assets and cryptocurrency assets.
Crypto assets are distinguished by their use of encryption in validating creation and transfers.
The law gives the Vietnamese government the authority to define regulations, including anti-money laundering measures and cybersecurity standards that are aligned with international law.
Vietnam’s new law also introduces a number of incentives that target blockchain start-ups and digital infrastructure developers.
The incentives include government subsidies, tax exemptions, and other perks.
Bitcoin, the largest cryptocurrency by market capitalization, is currently trading at $106,700 U.S., having gained 14% this year.
