Vietnam Enacts Digital Asset Law to Regulate Crypto

According to ShibDaily, Vietnam has made a significant advancement in the regulation of cryptocurrencies with the enactment of a new digital asset law. This legislation officially recognizes digital assets within the national legal framework, defining them as assets that utilize encryption or related technologies for their creation, issuance, storage, and transfer. The law introduces two distinct categories: virtual assets and crypto assets. Virtual assets are described as digital assets used for exchange or investment, and they are treated separately from securities, fiat-backed digital currencies, and other financial instruments already governed by existing civil or financial regulations. Crypto assets, on the other hand, are defined as digital assets that employ encryption technology to verify transactions and establish ownership, excluding securities and fiat-backed digital currencies. Vietnam's newly enacted Law on Digital Technology Industry places the regulation of digital assets under government oversight. Authorities are now responsible for establishing clear guidelines for the classification, regulation, and trading of these assets. The legislation also mandates regulatory bodies to implement safeguards against cybersecurity threats and enforce measures to combat money laundering, terrorist financing, and the proliferation of weapons of mass destruction. Crafted with international standards in mind, the new law aims to address the regulatory gap in Vietnam, where a clear legal framework for digital assets has been largely absent. Vietnam's inclusion on the Financial Action Task Force (FATF) "gray list" due to concerns over anti-money laundering efforts has prompted calls for clearer regulations regarding virtual assets. The FATF has urged Vietnam to implement a more robust legal framework to mitigate risks associated with digital finance. Set to take effect on January 1, 2026, Vietnam's new digital asset law aims to strengthen the country's legal framework, align it with international standards, and support efforts to exit the FATF's monitoring list. This legislation marks a significant step in Vietnam's evolving approach to digital finance, indicating a growing recognition of the sector's role in the country's broader economic and technological strategy. The law's passage reflects Vietnam's commitment to establishing a comprehensive regulatory environment for digital assets, ensuring both innovation and security in the rapidly evolving digital finance landscape.