VCI Legal – May 18, 2026

After a decade of existence in the legal “gray zone”, the digital asset market has officially entered an era of transparency and discipline with the Digital Technology Industry Law 2025 taking effect from January 1, 2026. This shift is not merely about legalizing a new type of asset but represents a comprehensive strategy to position Vietnam as a regional digital financial hub. 

Legal Definition and Ownership Rights 

For the first time, concepts of digital assets, virtual assets, and crypto assets are scientifically identified and classified within the legal normative system. According to Articles 46 and 47 of the Digital Technology Industry Law, digital assets are recognized as a type of asset under the Civil Code, existing in the form of digital data, created, issued, stored, and transferred through modern technologies such as blockchain. 

This recognition allows individuals and organizations owning digital assets to exercise civil rights such as inheritance, donation, and notably, using them as collateral for credit obligations under the amended Intellectual Property Law and Law on Credit Institutions. This transforms tokens from mere numbers on a screen into genuine financial values capable of being liquidated within the banking system. 

Payment Restrictions and Protection of the National Currency 

Although having taken a major step in recognizing the asset value of cryptocurrencies, the Government maintains a cautious and firm stance on their payment function. According to legal reports from leading consulting firms, digital assets in Vietnam are absolutely not considered legal tender. 

Using Bitcoin or any cryptocurrency to pay for goods or services remains a violation of the State Bank’s regulations on non-cash payment methods. This regulation aims to protect monetary policy stability, prevent the “dollarization” or “bitcoinization” of the economy, and ensure that the State Bank retains absolute control over money supply and inflation. 

Crypto-Asset Service Provider (CASP) Regime – Establishing the “Rules of the Game 

The transition from a spontaneous market to a controlled one is clearly demonstrated through extremely stringent licensing conditions for Crypto-Asset Service Providers (CASPs). 

To ensure that only truly capable financial institutions are allowed to operate market infrastructure, Vietnam has set very high barriers on capital and ownership structure, even exceeding the standards of many regional countries. 

These regulations show a clear trend of “institutionalization.” Instead of allowing foreign exchanges to operate cross-border without control, the Government encourages the formation of alliances between domestic technology firms and major commercial banks. 

Challenges for global digital asset enterprises entering Vietnam are also raised. The requirement for data localization means not only storing customer identification information in Vietnam but also ensuring that private key management systems and direct transaction logs are on infrastructure subject to actual inspection by state authorities. This creates a technical barrier for traditional hot/cold wallet models based on international clouds, forcing enterprises to invest in data center infrastructure meeting Information Security Level 4 standards within Vietnamese territory. 

Roadmap to get out of the FATF grey list 

The FATF report in early 2026 noted that Vietnam has made remarkable progress in implementing corrective actions for technical compliance deficiencies identified in the 2022 assessment. However, areas related to virtual asset supervision and identification of beneficial owners remain “bottlenecks” to be thoroughly addressed. 

Vietnam’s presence on the Grey List subjects Vietnamese enterprises’ cross-border financial transactions to Enhanced Due Diligence (EDD) from international correspondent banks, increasing compliance costs and prolonging international transaction settlement times. 

To address this, the Government has approved the National Action Plan on Anti-Money Laundering for the 2026-2030 period, focusing on legal improvement, risk monitoring, international cooperation, and legal entity transparency. 

Furthermore, the implementation of FATF rules, especially the “Travel Rule” (requiring sharing of sender and receiver information for digital asset transactions), has become mandatory for all licensed CASPs in Vietnam from 2026. 

Crypto Asset Tax Policy 

Circular 32/2026/TT-BTC t establishes tax obligations for activities related to digital assets in Vietnam, designed according to the model of “low tax rates, wide coverage” to encourage voluntary declaration in the early stages. This policy separates value-added tax and income tax: (i) VAT exemption; (ii) Tax rate of 0.1% per transaction. 

The Vietnamese tax authority has set an ambitious target of collecting VND 14.6 quadrillion for the state budget during 2026-2030. To realize this goal in the digital economy, the Ministry of Finance has deployed an AI-based transaction monitoring system directly connected to CASP infrastructure. The integration of the eTax Mobile application with the national biometric identification database allows tax authorities to automatically reconcile cash flows from bank accounts to digital asset exchanges. This makes “tax evasion” through cross-border P2P transactions riskier than ever, as AI algorithms can detect abnormal behavior and request immediate explanations of asset origins. 

Technical Challenges  

With the legal framework now clear, the race shifts to the technology security front. Under the amended Law on Credit Institutions, commercial banks are now permitted to provide securities custody services and equivalent assets, creating a basis for participating in the crypto asset custody market. 

Unlike bank deposits insured by the Deposit Insurance of Vietnam, crypto assets currently have no equivalent protection mechanism in case of exchange insolvency. Experts are proposing the establishment of technology risk reserve funds and requiring CASPs to purchase professional liability insurance for errors arising from software vulnerabilities or cyberattacks. This would be the ultimate “shield” to protect the rights of 21 million crypto asset holders in Vietnam. 

Conclusion 

Vietnam’s journey from a “gray zone” to a fully managed digital asset ecosystem in 2026 is a testament to the Government’s determination to build a transparent and sustainable digital economy. The promulgation of the Digital Technology Industry Law, the strict implementation of the FATF’s AML standards, and the establishment of clear tax obligations have created a solid “three-legged shackle” for the development of the market. 

Although technical and practical challenges remain, with the legal foundation in place, Vietnam stands at a major opportunity to attract billions of USD in foreign investment, drive innovation, and consolidate its position as a pioneering country in the global digital finance revolution. The success of this model will depend on the close coordination between regulatory authorities and the compliance spirit of enterprises in creating a “disciplined, transparent, and sustainable” business environment. 

5 core factors that businesses need to pay special attention to in the context of the new digital asset regulatory framework: 

– Asset recognition but prohibition of use for payment 

– Extremely stringent CASP licensing conditions 

– AML compliance obligations and risks from the FATF Grey List 

– New tax policy (Circular 32/2026/TT-BTC) 

– Data sovereignty and domestic storage 

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