Vietnam Legalizes Crypto to Save Reputation! Officially Off the FATF Gray List?

Jakarta, Pintu News – Vietnam is making a big splash in the crypto world after officially passing the Digital Technology Industry Law on June 14, 2025. This regulation will be effective from January 1, 2026 and is considered a milestone, as it makes Vietnam the first country in the world to have a special law for the digital technology industry, including crypto regulation.

This step was taken to improve Vietnam’s reputation after being graylisted by the Financial Action Task Force (FATF) since 2023 due to weak anti-money laundering and terrorism financing (AML/CFT) controls.

These efforts are expected to restore the confidence of global investors and open the door to large investment flows into Vietnam’s digital sector, including into the cryptocurrency industry such as Bitcoin (BTC), Ethereum (ETH), and other virtual assets.

Vietnam and the FATF Challenge

Vietnam’s inclusion in the FATF gray list in 2023 is a strong warning from the international financial community. Countries on this list are considered to have serious weaknesses in financial system supervision, especially related to anti-money laundering and countering the financing of terrorism. This status has a direct impact on investor perception and makes foreign banks hesitant to partner with Vietnam’s domestic financial institutions.

To address these issues, the Vietnamese government is now accelerating legal reforms, one of which is by formulating a Digital Technology Industry Law that emphasizes the legality of crypto assets and clearly separates the categories of digital assets, between crypto (such as Bitcoin and Ether) and non-financial virtual assets.

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The gist of Vietnam’s New Crypto Regulation

The new law regulates digital assets and crypto assets in detail, and provides a clear framework for companies and startups in this sector. The government imposes licensing, supervision, and compliance standards in line with international recommendations. It requires identity verification (KYC) processes, transaction monitoring, and strict reporting obligations to prevent fraud and money laundering through crypto assets.

In addition, the law also features a regulatory sandbox that allows controlled testing of blockchain products, DeFi, and virtual asset services. Fiat-based stablecoins are also regulated separately, while Central Bank Digital Currency (CBDC) and securities are excluded from this category.

Encouraging Digital Innovation & Investment

Vietnam offers various incentives to attract technology companies and foreign investors. For example, startups and small-medium enterprises in blockchain, AI, and chip design will receive tax rebates, scholarships, and subsidized access to digital innovation parks. Vietnamese digital experts get a five-year tax exemption, and foreign experts can get a five-year visa without a work permit.

This move is expected to create a strong digital ecosystem, multiply talents, and strengthen Vietnam’s position as Southeast Asia’s digital technology hub.

Strengthening Law Enforcement and International Cooperation

With this law, Vietnamese authorities now have a clear legal basis to combat digital asset fraud and strengthen cross-border cooperation in tackling cybercrime. The new rules also facilitate investigations and speed up the prosecution of cross-border crypto fraud cases.

Two major cases of crypto fraud in Vietnam during 2024-2025 are evidence of the need for strict regulation-from the arrest of BitMiner perpetrators to the dissolution of Million Smiles operations. With a clear legal framework in place, Vietnam has a good chance of getting off the FATF gray list in the near future.

Impact and Future Prospects

This crypto regulation emphasizes Vietnam’s commitment to creating a transparent, safe, and innovative digital financial environment. Crypto legality, strict supervision, and integration with the conventional banking system will increase global investor confidence and open up new opportunities for Vietnam’s digital economic growth.

If all these reforms become effective by January 2026, Vietnam has a great opportunity to get off the FATF gray list, improve its global image, and become a major player in Asia’s digital economy.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Cointelegraph. How Vietnam is using crypto to fix its FATF reputation. Accessed July 9, 2025.