Vietnam has enacted a new Law on the Digital Technology Industry, designed to align with Financial Action Task Force (FATF) standards and enhance Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) compliance.
The law, effective January 1, 2026, establishes a regulatory framework specifically distinguishing between crypto assets and virtual assets. This distinction directly addresses concerns raised by FATF, which grey-listed Vietnam in 2023 due to AML/CFT deficiencies.
By strengthening compliance mechanisms to combat money laundering and terrorism financing, the legislation aims to position Vietnam for potential removal from the FATF grey list. This regulatory alignment is expected to boost international cooperation and foster sustainable development within the country’s cryptocurrency industry.
Beyond compliance, the law is viewed as a catalyst for digital innovation and economic growth. It supports Vietnam’s strategic national goal to evolve into a leading Asian digital technology hub by 2035.
Implementation of the law, alongside complementary AML reforms led by the State Bank of Vietnam, is anticipated to increase market confidence and improve Vietnam’s stance in the global financial system.