Vietnam has officially passed the Law on Digital Technology Industry, legalizing Bitcoin and other crypto assets.

Approved by the National Assembly on June 14, 2025, the law will take effect on January 1, 2026.

This move represents a significant policy shift and positions Vietnam as a rising tech leader in Southeast Asia.

The law introduces a structured framework to support digital assets while enhancing investor protection and digital economy growth.

Legal Framework Divides Digital Assets into Two Categories

Under the new legislation, digital assets are classified into two distinct types: virtual assets and crypto assets.

Virtual assets include non-crypto digital items, such as in-game tokens and points used for digital exchanges.

Crypto assets such as Bitcoin are defined as encrypted digital assets used to validate transactions.

This classification brings clarity for developers, investors, and financial regulators navigating the expanding digital asset space.

National Effort to Attract Global Talent and Capital

The law aligns with Vietnam’s broader national strategy aimed at digital innovation.

Alongside crypto, the strategy prioritizes artificial intelligence, semiconductors, and digital infrastructure.

Government authorities, including the Ministry of Finance and the State Bank of Vietnam, have been tasked with establishing a regulatory framework to guide the operations of digital assets, reinforcing the state’s commitment to long-term digital growth.

According to a recent Medium post analyzing the development, "This new law has opened up a world of opportunities for businesses, investors, and the youth of Vietnam. It has also solidified the country’s position as a leader in the Southeast Asian region when it comes to embracing the future of technology".

Prime Minister’s Directive Underscores High-Level Support

The decision follows a prior directive from Vietnam’s Prime Minister, calling for the formulation of a comprehensive legal framework for cryptocurrencies, including Bitcoin and Ethereum.

This directive highlighted the government's readiness to embrace blockchain technology in a structured and secure manner, balancing innovation with regulatory oversight.

Crypto Legalization Strengthens Market Confidence

At the time of reporting, Bitcoin is trading at approximately $106,607, reflecting a daily gain of 0.55% and a weekly increase of about 1%.

Improved global trade conditions and growing investor confidence have contributed to this upward trend.

Vietnam’s move to legalize Bitcoin adds further positive sentiment by demonstrating increasing governmental support for crypto assets globally.

With this bold legislative step, Vietnam joins a growing list of nations recognizing the economic and technological potential of blockchain and digital assets.

PHOTO: PEXELS

This article was created with AI assistance.