The new digital law in Vietnam brings encryption to the legal fold star-news.press/wp

Vietnam has taken an official step towards legitimacy to its digital economy and its regulation through the approval of the law in the digital technology industry – the first comprehensive legal framework recognized by the assets of encryption.

The legislation between virtual assets and encryption is not only distinguished, but also distinguishes the country with global standards to combat money laundering, which may pave the way to remove the gray list of the Financial Work Squad (FATF).

Vietnam’s presence in the FATF GRAY list has been created since 2023 the challenges of compliance with local financial institutions and increased scrutiny across border transactions.

Vietnam creates a two -level classification system

The National Assembly approved the so -called “Digital Technology Industry Law” on Saturday, June 14.

It is scheduled to be implemented in 2026, the law represents a wider batch to stimulate innovation in emerging technologies such as artificial intelligence and semi -conductors, with clearer bases for the encryption sector after years of organizational forgetfulness.

According to the magazine, VAFIE, “The law determines the assets of encryption as digital assets that use encryption or digital technologies similar to health verification during the creation, issuance, storage or transfer.”

The legislation determines a clear discrimination between different categories of digital assets and also excludes securities and coins from the definition of encryption assets.

The new law creates separate categories of virtual assets and encryption assets. Virtual assets are digital assets used for exchange or investment. At the same time, encrypted currencies use the encryption technique to verify the authenticity of transactions as well as ownership.

The government maintains the authority to develop detailed classifications, working conditions and management protocols for digital assets. In compliance with international best practices, organizational bodies must implement cybersecurity measures to stop the spread of weapons, money laundering and terrorist financing.

FATF specifically recommended the creation of clear assets lists as part of compliance efforts to combat money laundering.

Implementation begins on January 1, 2026 and provides a transitional period for companies and organizers to prepare operational frameworks. The Ministry of Science and Technology has drafted the legislation as part of the broader digital technology sector initiatives.

Besides the organization of encrypted currency, the law creates extensive incentives for digital technology institutions and innovation programs. Special policies encourage the experiment of control technology and the development of joint digital infrastructure across multiple sectors.

Local governments must implement human resource development policies for digital technology industries, especially for major projects that include semiconductors, artificial intelligence systems and digital technology products. Supports will support the employment of high -quality training programs and workforce.

Legislation also gives priority to software production and artificial intelligence data centers for investment incentives, taxes and land use. These sectors receive official recognition as strategic priorities under Vietnamese law.