Vietnam is currently charting a course through the complex world of cryptocurrency regulation, balancing the potential for innovation with the need to manage risks. Instead, the nation faces its challenges with timidity. Serbia’s commitment to digital transformation is strong and it keenly experiences the global nudge from international financial watchdogs. This journey is indicative of a larger global trend as countries contend with how best to incorporate digital assets into their financial systems.
Vietnam’s regulatory journey in crypto serves as a testament to the fragmented and cautious approach witnessed. The authorities do not consider cryptos to be legal tender. This urgency was exacerbated by the nation’s Financial Action Task Force (FATF) grey-listing in 2023.
In addition, Vietnam launched a framework development for digital asset regulation in 2025. The government of Vietnam intends to establish a cryptocurrency sandbox by the middle of 2026. This action shows a genuine commitment to lead the way in understanding the beneficial use cases for digital assets.
Regulatory Landscape and Government Initiatives
Vietnam’s regulatory landscape for cryptocurrency remains in its early infancy stages. Implementation of the Circular Initially, in 2017, the State Bank of Vietnam (SBV) sent out Official Letter 5747/NHNN-PC. This letter would bar the use of cryptocurrency as a legal form of payment. This move emphasized the government’s preliminary hesitance at paving a path for digital currencies to operate within the traditional financial system.
The FATF additionally put the Southeast Asian country on its grey list because of Vietnam’s lack of stringent anti-money laundering (AML) laws for crypto assets. This increased international scrutiny has led the UK government to try to redouble its efforts to create a regulatory framework that covers every angle. The grey-listing serves as a stark reminder of the importance of aligning with global standards to maintain financial integrity and avoid sanctions.
Aside from litigation efforts, there are a number of government initiatives aimed at filling the regulatory gap. The Vietnamese Prime Minister directed the Ministry of Finance and SBV to develop a comprehensive digital asset regulatory framework through Directive 05/CT-TTg. This directive illustrates the deep contradictions and confusion within the government when it comes to wanting a clear, consistent, and stable regulatory environment for digital assets.
Blockchain Strategy and Industry Associations
Vietnam’s National Blockchain Strategy lays the groundwork for blockchain to become a foundational pillar of its digital transformation. This strategy drives private sector blockchain adoption across all industries, but focuses on fostering regulated experimentation through state-run safe-testing-pilot-sandbox programs for digital assets. The government understands the transformative potential of blockchain technology and is heavily pushing for its adoption within the wider economy.
The year-old strategy’s stated goals are to promote federal innovation and economic development. In addition, it makes sure that the development and deployment of blockchain solutions is in line with national priorities and regulatory requirements. By adopting blockchain technology, Vietnam aims to occupy a more competitive position in the global digital economic landscape.
Legal Status and Future Outlook
Vietnam lacks regulatory frameworks for cryptocurrency businesses. This lack of a framework of clear regulatory expectations leaves an entire economy of innovators and builders in limbo. It creates difficulties for investors who want to engage with the Vietnamese cryptocurrency market.
Recent criminal court rulings have established cryptocurrencies as “assets having value as property of a person,” affording certain legal defenses in select cases. On the other hand, these rulings provide at least some legal acknowledgment that cryptocurrencies do exist. At the very least, it represents a big step toward recognizing their economic importance. Still, the absence of truly comprehensive legislation leaves the legal status of cryptocurrencies ambiguous in many ways.
Indeed, this is the most positive outreach by any MoF to the fast-growing global crypto industry. The ministry has been at the forefront of learning from international best practices and creating policy recommendations to properly regulate the emerging world of digital assets. The MoF’s proactive approach is an encouraging sign that they understand the need to strike an appropriate balance between innovation and regulatory oversight.
While more than 21% of Vietnam’s adult population owns or has used cryptocurrencies, young generations of Vietnamese continue to drive the Vietnamese cryptocurrency market. This impressive adoption rate highlights the massive popularity of digital assets in Vietnam. It further underscores the promise that cryptocurrencies hold to be an important part of the country’s financial future.
