Vietnam Legalizes Cryptocurrencies and Launches Web3 Initiative

Vietnam has taken a decisive step toward embracing digital assets with the passage of the Digital Technology Industry Act. The law, set to take effect in January 2026, provides legal clarity for cryptocurrencies and digital assets, distinguishing them from traditional financial instruments. It establishes regulatory frameworks for exchanges, wallets, and token issuers while adhering to international AML/KYC standards.

The legislation introduces a sandbox mechanism for controlled experimentation in financial hubs like Ho Chi Minh City and Da Nang. This MOVE aligns with Vietnam''s ambition to become a Southeast Asian Web3 and blockchain hub by 2030. The national strategy includes tax incentives, subsidies, and investments in AI, semiconductors, and digital infrastructure.

Vietnam''s regulatory framework marks a significant shift from the previous gray area for crypto activities. The government aims to foster innovation while implementing robust cybersecurity measures to strengthen its standing with international financial watchdogs.