Vietnam has taken a critical step towards regulating the cryptocurrency sector with the aim of passing the Digital Technology Industry legislation, meeting FATF standards and restoring its international financial position.
The legislation introduces a clear classification of digital assets, requires strict compliance measures, and addresses previous gaps in the money laundering and counterterrorism financing framework.
According to Coinotag, the new Vietnamese law not only legalizes crypto assets, but also strengthens authorities with enhanced tools to promote digital asset fraud and innovation.
Vietnam’s new cryptographic method is consistent with FATF standards, enhancing AML/CFT compliance and increasing investors’ trust in the digital asset market.
Vietnam’s strategic move to meet FATF standards for crypto regulations
Vietnam’s recent enactment of laws on the digital technology industry represents a pivotal moment in its approach to cryptocurrency regulation. This law, effective from January 1, 2026, establishes a comprehensive framework that distinguishes between Cryptocurrency assets and Virtual assetsenabling coordinated regulatory oversight. In doing so, Vietnam will address key FATF concerns related to anti-money laundering (AML) and terrorist financing (CFT) that previously led to the grey list in 2023.
Understanding the role of the FATF and the Vietnamese compliance journey
The Financial Action Task Force (FATF) is an intergovernmental agency that sets global standards for combating money laundering and terrorist financing. The inclusion of Vietnam on the FATF Gray list highlights flaws in its surveillance, particularly in its financial supervision for virtual asset service providers. The new law addresses these issues directly by enacting strict customer due diligence (CDD), transaction monitoring and reporting requirements. This alignment not only encourages removal from Vietnam’s grey list, but also positions the country as a trusted participant in the global financial system, attracts foreign investment and promotes the sustainable growth of the digital economy.
Key provisions of Vietnamese law regarding the digital technology industry affecting cryptographic regulations
The innovative approach to law includes several notable clauses.
Asset Classification: Clear differentiation of crypto assets (blockchain-based currencies such as Bitcoin and ether) and virtual assets (non-financial digital items) except for CBDCs and securities to streamline the focus of regulations.
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