Under the Law on the Digital Technology Industry, Viet Nam has officially legalized the encrypted currency, introducing a series of tax incentives and other incentives aimed at supporting home-grown start-ups and retaining local talent. The new provisions will enter into force in early January 2026, establishing a legal framework for the regulation of encrypted currency and formally recognizing in civil law the status of encrypted currency as property.
Under Vietnamese law, encrypted currency will be divided into four categories: securities in token or encrypted securities assets, payment in tokens, practical and commingled in tokens. Start-ups and developers will also benefit from incentives such as tax exemptions, subsidies, special visas to promote the development of the national digital economy. The bill was passed on 14 June and followed Prime Minister Fan Myung-hyun's instructions in March. The Minister of Finance and the National Bank of Viet Nam had been instructed by the Government to submit a draft by the end of the first quarter of 2025. This initiative is part of a broader plan to boost economic growth by 8 per cent.
With the implementation of the new framework, Viet Nam has joined the ranks of jurisdictions such as the EU and Dubai to implement legislation specifically aimed at encrypted currency, different from traditional financial regulation. The law may also raise Viet Nam ' s position in the field of international encryption. Viet Nam ranks fifth according to the 2024 Global Encryption Index published by Chainalysis, a block chain analysis company. However, due to deficiencies in the encryption-related anti-money laundering practice, Viet Nam remains on the FATF grey list. This landmark bill may help to address these issues.