Major Changes in Vietnam's Regulation and Taxation System for Encryption Assets

For a long time, Vietnam's legal positioning on encryption currency has been unclear, leading to relevant tax policies being in a gray area. However, this situation underwent a significant turnaround on June 14, 2025. The National Assembly of Vietnam passed the "Law on Digital Technology Industry," which for the first time incorporated encryption assets into the national legal system and implemented classified supervision, granting it legal status, marking a milestone event in the regulation of encryption assets in Vietnam.

The new law categorizes digital assets into "virtual assets" and "encryption assets" and empowers the government to formulate implementation details while strengthening requirements for cybersecurity, anti-money laundering, and counter-terrorism financing. This law will take effect on January 1, 2026, aiming to improve the relevant legal system, align with international regulatory standards, and assist Vietnam in quickly getting off the Financial Action Task Force ( gray list.

This article will analyze the impact of this legislative breakthrough on the digital economy landscape of Vietnam, interpreting the latest dynamics and future trends of its tax system. By sorting through the policy evolution of the Vietnamese government in recent years from a wait-and-see approach to actively constructing a regulatory framework, it will compare the practices of Southeast Asia and other countries around the world in terms of cryptocurrency taxation and regulation. In addition, it will also explore Vietnam's strategies in balancing risk prevention and innovative development, predicting potential specific policies that may be introduced in the future and their potential impact on Vietnam as an emerging digital economy.

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Vietnam Clarifies the Legal Status of Encryption Assets

Before the introduction of the "Digital Technology Industry Law", Vietnam's legal positioning on encryption had remained ambiguous. Initially, the Vietnamese government imposed strict restrictions and risk warnings on encryption as a means of payment. In July 2017, the State Bank of Vietnam issued a letter explicitly prohibiting cryptocurrencies like Bitcoin as a means of payment and emphasized their illegality. In April 2018, the Prime Minister instructed to strengthen the management of activities related to encryption.

Although the Ministry of Finance did not prohibit cryptocurrency trading in its official letter in April 2016 and defined it as "property" and "goods", this positioning is controversial in actual execution due to the lack of clear legislative support. According to the definition of assets in Vietnam's 2015 Civil Code, digital assets such as cryptocurrency do not belong to any of the categories, and thus are not considered physical assets under current law. This classification gap creates a significant legal void, directly affecting the legal treatment and regulatory methods of these assets.

On June 14, 2025, the "Digital Technology Industry Law" passed by the National Assembly of Vietnam completely changed the situation. This law clearly defines "digital assets" for the first time in the Vietnamese legal system and divides them into "encryption assets" and "virtual assets." This groundbreaking legislation ends years of uncertainty regarding the legal status of encryption assets in Vietnam, formally recognizes encryption assets as legal property under civil law, and provides a legal basis for individuals and organizations to legally establish and exercise property rights.

This shift from "non-recognition" to "legalization" is not accidental. The Vietnamese government has recognized the enormous potential of the encryption economy. Despite regulatory obstacles, Vietnam still has one of the highest cryptocurrency ownership rates in the world, with approximately 20.95% of the population holding crypto assets and an annual inflow of funds exceeding $100 billion. At the same time, Vietnam also faces international anti-money laundering and counter-terrorism financing pressures, being placed on the FATF gray list, which requires enhanced management of virtual assets. Therefore, legalization has become a necessary prerequisite to attract investment, promote the development of the digital economy, and effectively regulate this emerging industry. This indicates that the Vietnamese government has shifted from simple risk prevention to actively embracing the opportunities of the digital economy, and is trying to guide and regulate this emerging industry by establishing a sound legal framework.

The Shift in Vietnam's Cryptocurrency Regulatory Framework

The shift in Vietnam's official attitude towards the classification of encryption currency reflects a significant change in its regulatory system. In the past, Vietnam's encryption regulatory framework was characterized by inadequacy and a passive response, often employing a one-size-fits-all approach to regulation. With the rise of the global encryption currency wave and changes in Vietnam's leadership, the current encryption currency regulatory system is rapidly improving. Not only has a preliminary division of regulatory responsibilities been established, but there is also active discussion and implementation of various regulatory pilot projects, aiming to effectively address challenges such as anti-money laundering and counter-terrorism financing while embracing new technologies.

) Evolution of Regulatory Framework

Vietnam's encryption regulatory framework has undergone a significant evolution from non-existence to existence, from passive response to proactive guidance.

From 2016 to 2022, Vietnam's encryption regulatory system has gone from non-existence to existence, and from a one-size-fits-all approach to an exploratory research phase. In April 2016, the Ministry of Finance issued a public letter announcing that it would not prohibit cryptocurrency trading, but the classification remained vague. In July 2017, the State Bank of Vietnam clearly prohibited cryptocurrencies like Bitcoin from being used as a means of payment. In April 2018, the Prime Minister instructed to strengthen the management of activities related to cryptocurrencies. In May 2020, the Prime Minister directed the State Bank to launch a pilot project to explore the application of blockchain in cryptocurrencies. In March 2022, the Vietnam Blockchain Association was established, becoming the first legal entity in Vietnam focused on encryption assets. In the same year, Vietnam passed anti-money laundering legislation requiring institutions providing payment services to implement customer due diligence measures.

After 2023, especially following the changes in Vietnam's leadership in 2024, Vietnam's regulatory attitude towards encryption gradually softened. In February 2024, the Prime Minister instructed the Ministry of Finance to draft a legal framework for virtual assets. In October of the same year, the Prime Minister signed a decision to promulgate the "2025 National Strategy for the Development and Application of Blockchain Technology in Vietnam," aiming to make Vietnam a regional leader in blockchain innovation. In June 2025, the "Digital Technology Industry Law" was passed, establishing a tolerant and prudent regulatory framework to promote broader digital economic development.

The maturation of the regulatory framework from "passive response" to "active guidance" is a key feature of Vietnam's policy evolution in the digital asset sector. Initially, Vietnam's regulation of cryptocurrencies was primarily centered around "banning them as a means of payment" and "risk warnings," reflecting a passive and preventative stance. However, in the past two years, from the Prime Minister's directive to research and establish a blockchain association, to the promulgation of the "Law on Digital Technology Industry" and the National Blockchain Strategy, the regulatory focus has clearly shifted towards actively constructing a framework that incorporates encryption assets into the national digital economy development strategy. This marks the entry of Vietnam into a more mature and pragmatic stage of digital asset regulation, where the goal is no longer merely to control risks, but to unleash innovation potential, attract domestic and foreign investment, and enhance its position in the global digital economy by establishing a clear and predictable legal environment.

The current regulatory framework and division of labor in Vietnam

Vietnam's current encryption regulatory framework is mainly managed by various ministries, forming a pattern of "loose regulation". Multiple key institutions, including the State Bank of Vietnam, the Ministry of Finance, the Ministry of Public Security, and the Vietnam Blockchain Association, collaborate to build and improve the regulatory framework.

The State Bank of Vietnam is mainly responsible for formulating monetary policy, supervising financial institutions, and assessing the impact of encryption currencies on the traditional financial system. The Ministry of Finance is responsible for researching and formulating tax policies for encryption assets and drafting relevant legal frameworks. The Ministry of Public Security is responsible for combating illegal activities related to encryption currencies, including money laundering and fraud. The Vietnam Blockchain Association, as an industry self-regulatory organization, provides policy recommendations to the government and promotes the application and development of blockchain technology.

Pilot of Regulatory Sandbox and Risk Compliance Construction under the New Normal

In order to explore innovative applications of digital assets under the premise of controllable risks, the Vietnamese government has actively introduced regulatory sandbox mechanisms and pilot projects.

The Vietnamese government is discussing the establishment of regional and international financial centers, one key aspect of which is the introduction of a controlled testing policy (sandbox) for financial technology, especially regarding business models involving encryption assets and cryptocurrencies. This sandbox mechanism allows for small-scale testing of new financial technologies and business models in a controlled environment, thus assessing their potential risks and benefits before full-scale promotion. For example, Da Nang has been approved to pilot a special mechanism, including a project for using stablecoins for payments by international tourists, which is seen as an important attempt to explore the application of digital payments in the tourism industry.

In addition, Vietnam is actively exploring the development of a central bank digital currency (CBDC) - the digital dong. The Prime Minister of Vietnam has repeatedly called for the national bank to study the pros and cons of digital currency and to initiate a blockchain-based pilot encryption project. Although the issuance of the digital dong is still in the evaluation stage, its potential legal status and supplementary role to the traditional financial system are important components of Vietnam's digital economic development.

Of course, while promoting innovation in the regulatory framework, anti-money laundering and counter-terrorist financing compliance remain core concerns for the Vietnamese authorities, especially after being placed on the gray list by the Financial Action Task Force.

Vietnam is currently still on the FATF's "increased monitoring list", primarily due to its shortcomings in encryption-related anti-money laundering practices. Being placed on the gray list means that the country has strategic deficiencies in combating money laundering and terrorist financing, which may affect its international financial reputation and ability to attract foreign investment. In order to be removed from the gray list, Vietnam must develop a virtual asset management policy and strengthen related enforcement.

The passage of the "Digital Technology Industry Law" is an important measure for Vietnam to respond to FATF pressure. The law clearly requires all digital asset activities to strictly implement anti-money laundering and counter-terrorism financing measures to enhance security and transparency. This means that future encryption exchanges and related service providers must comply with global standards such as KYC and AML, and may be required to maintain compensation funds to protect users from cyber attacks, thereby reducing the risk of financial crime.

Vietnam Cryptocurrency Tax Policy and Its Latest Developments

The evolution of Vietnam's cryptocurrency tax policy has almost coincided with the country's regulatory policies on encryption. In the early stages, due to the ambiguous and contradictory characterization of encryption by Vietnamese authorities, the regulatory policies were rough and one-size-fits-all, making it unrealistic to impose taxes on encryption. However, the rapid expansion of cryptocurrency trading volumes forced the government to confront its legal status, compelling Vietnamese authorities to study encryption. Especially entering 2024, the government has shown a greater urgency in establishing a clear legal framework.

Currently, cryptocurrency trading in Vietnam is still in a tax gray area.

For a long time, due to the lack of clear legal definitions and regulatory frameworks, cryptocurrency trading in Vietnam has remained in a tax gray area. Although the Ministry of Finance's official letter in 2016 did not prohibit cryptocurrency trading and defined it as "property" and "goods", it did not address specific tax regulations. The official letter from the central bank in 2017 clearly did not recognize cryptocurrencies like Bitcoin as a means of payment, further exacerbating legal uncertainties, making it difficult for tax authorities to effectively tax cryptocurrency activities. In addition, Vietnam's 2015 Civil Code did not include digital assets in its definition of property, which also poses significant obstacles to cryptocurrency tax administration.

Compared to Vietnam's clear taxation system for stock trading, activities in the encryption field have been exempt from tax obligations for a long time. This situation has made Vietnam a de facto "tax haven" in the encryption field, attracting a large number of encryption investors, but it has also resulted in a huge gap in government revenue from taxes.

The new regulations outline the legal framework for taxation on encryption.

The "Digital Technology Industry Law" will officially take effect on January 1, 2026, marking a key step for Vietnam in its cryptocurrency tax policy. Although it does not directly issue a cryptocurrency tax law, it lays the legal foundation for future taxation. This law clearly defines "encryption assets" and "virtual assets" for the first time at the legal level. This milestone definition changes the previously ambiguous legal status of cryptocurrency in Vietnam, making it likely to be regarded as legal property.

In this context, the Ministry of Finance is finalizing a draft resolution regarding a pilot program for the issuance and trading of encryption currencies. The pilot will assess the possibility of applying value-added tax, corporate income tax, and personal income tax to encryption asset trading applications. The pilot program will be conducted on a small scale and will be closely monitored by national regulatory agencies to study how to determine the income from encryption assets, thereby establishing transparent regulations to avoid budget losses and protect investors' rights.

There are currently various discussions regarding the proposed tax rate. One suggestion is to emulate stock trading.