Major Changes in Vietnam's Cryptocurrency Asset Regulation and Taxation System

For a long time, Vietnam has had ambiguous legal positioning and tax policies regarding cryptocurrency, leaving market participants facing uncertainty. However, this situation underwent a significant turning point on June 14, 2025. The National Assembly of Vietnam passed the "Law on Digital Technology Industry," which for the first time incorporates encryption assets into the national legal framework and implements clear classified regulation, officially establishing their legal status and marking a milestone in the regulatory process of encryption assets in Vietnam.

The new law classifies digital assets into two categories: "virtual assets" and "encryption assets", excluding financial instruments such as securities and digital fiat currencies. It authorizes the government to formulate implementation regulations and simultaneously strengthens requirements for cybersecurity, anti-money laundering, and counter-terrorism financing. This law will come into effect on January 1, 2026, aiming to improve the relevant legal framework, align with international regulatory standards, and help Vietnam quickly escape the FATF grey list.

This article will analyze the legislative breakthrough's role in reconstructing Vietnam's digital economy landscape and interpret the latest dynamics and future trends of its tax system. By reviewing the evolution of the Vietnamese government's policies from cautious observation to actively constructing a regulatory framework in recent years, a comparative analysis will be made with the practices of other Southeast Asian and global countries in the fields of cryptocurrency taxation and regulation. Additionally, it will also look ahead to Vietnam's strategies in balancing risk prevention and innovative development, predict specific policies that may be introduced in the coming years, and assess the potential impact of these policies on Vietnam as an emerging digital economy.

1. Vietnam Clarifies the Legal Status of Encryption Assets

Before the introduction of the Digital Technology Industry Law, Vietnam's legal positioning on encryption was in a vague and constantly changing state. Initially, the Vietnamese government mainly expressed its stance by strictly limiting the use of encryption as a means of payment and issuing risk warnings. For example, in a letter issued by the State Bank of Vietnam in July 2017, it was explicitly stated that cryptocurrencies such as Bitcoin are not recognized as legal currency or means of payment in Vietnam, and their issuance, supply, and use are prohibited. In April 2018, the Prime Minister issued an instruction requiring relevant departments to strengthen the management of encryption activities.

Although the Ministry of Finance stated in an official letter in April 2016 that it does not prohibit cryptocurrency trading and defines it as "property" and "goods," there is uncertainty in the actual implementation of this directive due to the lack of clear legislative support. Furthermore, according to the definition of assets in Vietnam's 2015 Civil Code, digital assets such as cryptocurrencies do not fall into any of the categories, and thus are not considered tangible assets under current law. This classification gap has created a significant legal void.

However, this ambiguous situation underwent a fundamental change on June 14, 2025. The "Digital Technology Industry Law" passed by the Vietnamese National Assembly for the first time clearly defined "digital assets" within the Vietnamese legal system and classified them into "encryption assets" and "virtual assets". This legislative breakthrough ended years of uncertainty regarding the legal status of encryption assets in Vietnam, officially recognizing encryption assets as legal property under civil law.

This strategic shift from "non-recognition" to "legalization" is not accidental. The Vietnamese government has recognized the enormous potential of the encryption economy. Despite regulatory obstacles, Vietnam has one of the highest cryptocurrency ownership rates in the world, with approximately 20.95% of the population holding crypto assets and annual inflows exceeding $100 billion. At the same time, Vietnam also faces the need to respond to international anti-money laundering and counter-terrorism financing pressures. Therefore, legalization has become a necessary prerequisite to attract investment, promote the development of the digital economy, and effectively regulate this emerging industry. This indicates that the Vietnamese government has shifted from purely risk prevention to actively embracing the opportunities brought by the digital economy.

2. The Shift in Vietnam's Cryptocurrency Regulatory Framework

Vietnam's official attitude towards the classification of encryption currency has shifted, reflecting a significant change in its regulatory system. In the past, Vietnam's encryption regulatory system faced issues of being incomplete and reactive, often employing a one-size-fits-all regulatory approach. However, with the rise of the global encryption currency wave and changes in Vietnam's leadership, the current encryption currency regulatory system is rapidly improving. It has not only formed a preliminary division of regulatory responsibilities but is also actively promoting discussions and implementations of several regulatory pilot projects.

2.1 Evolution of the Regulatory Framework

Vietnam's encryption regulatory framework has undergone a significant evolution from non-existence to being proactive in guidance.

From 2016 to 2022, Vietnam's encryption regulatory system has evolved from non-existence to establishment, from a one-size-fits-all approach to a phase of exploration and research. In April 2016, the Ministry of Finance issued a letter stating that it would not prohibit cryptocurrency trading, but the classification was ambiguous. In July 2017, the State Bank of Vietnam explicitly prohibited cryptocurrencies such as Bitcoin from being used as a means of payment. In April 2018, the Prime Minister called for strengthened management of activities related to cryptocurrencies. In May 2020, the Prime Minister instructed the State Bank to launch a pilot project to explore the application of blockchain in cryptocurrency. In March 2022, the Vietnam Blockchain Association was established, becoming the first legal entity in Vietnam focused on encryption assets.

After 2023, especially following the changes in Vietnam's leadership in 2024, Vietnam's regulatory attitude towards encryption gradually softened. In February 2024, the Prime Minister instructed the Ministry of Finance to draft a legal framework for virtual assets. In October of the same year, the "National Strategy for the Development and Application of Blockchain Technology in Vietnam 2025" was issued, aiming to make Vietnam a regional leader in blockchain innovation. In June 2025, the "Digital Technology Industry Law" was passed, establishing a tolerant and prudent regulatory framework to promote broader digital economy development.

2.2 Overview of the Current Regulatory Framework and Division of Responsibilities in Vietnam

Vietnam's current encryption regulatory framework is primarily managed by various ministries, forming a "loose regulatory" pattern. Several key institutions, including the State Bank of Vietnam, the Ministry of Finance, the Ministry of Public Security, and the Vietnam Blockchain Association, cooperate to jointly build and improve the regulatory framework.

2.3 Regulatory sandbox pilot and risk compliance construction under the new normal

The Vietnamese government is discussing the establishment of regional and international financial centers, introducing a controlled testing policy (sandbox) for financial technology, particularly targeting business models involving encryption assets and cryptocurrencies. For example, Da Nang has been authorized to pilot special mechanisms, including a pilot project for international tourist payments using stablecoins.

In addition, Vietnam is actively exploring the research and development of central bank digital currency (digital dong). Although the issuance of the digital dong is still in the evaluation stage, its potential legal status and complementary role to the traditional financial system are important components of Vietnam's digital economy development.

While promoting innovation in regulatory frameworks, anti-money laundering and counter-terrorism financing compliance remains a core focus for the Vietnamese authorities. The passage of the "Law on Digital Technology Industry" is an important measure for Vietnam to respond to FATF pressure, which clearly requires that all digital asset activities strictly implement anti-money laundering and counter-terrorism financing measures.

3. Vietnam Cryptocurrency Tax Policies and Their Latest Developments

The evolution of Vietnam's cryptocurrency tax policy has been almost synchronous with the country's regulatory policies on cryptocurrency. In the early days, due to the ambiguous and contradictory classification of cryptocurrency by Vietnamese authorities, the regulatory policies were rough and one-size-fits-all, making it unrealistic to impose taxes on cryptocurrency. However, the rapid expansion of cryptocurrency trading volumes forced the government to confront its legal status, compelling Vietnamese authorities to conduct research on cryptocurrency.

3.1 Currently, cryptocurrency trading in Vietnam is still in a tax gray area.

For a long time, due to the lack of clear legal definitions and regulatory frameworks, cryptocurrency trading in Vietnam has been in a tax gray area. Although the Ministry of Finance's circular in 2016 does not prohibit cryptocurrency trading and defines it as "property" and "goods", it does not address specific tax regulations. The State Bank of Vietnam also explicitly stated in a circular in 2017 that it does not recognize cryptocurrencies like Bitcoin as a means of payment, further exacerbating legal uncertainty.

Compared to Vietnam's clear stock trading tax system, activities in the encryption field have long been exempt from tax obligations. This situation has made Vietnam a de facto "tax haven" in the encryption field, attracting a large number of encryption investors, but it has also led to a huge gap in government tax revenues.

3.2 New regulations outline the legal framework for the taxation of encryption.

The "Digital Technology Industry Law" will officially take effect on January 1, 2026. This is a key step for Vietnam in terms of encryption currency tax policy, laying a legal foundation for future taxation. The Ministry of Finance is finalizing a draft resolution regarding a pilot program for encryption currency issuance and trading, which will assess the feasibility of applying value-added tax, corporate income tax, and personal income tax to encryption asset trading.

There are currently various discussions regarding the proposed tax rates. Some suggestions propose to levy a 0.1% transaction tax on encryption transactions, similar to stock trading. If cryptocurrencies are classified as investment assets, trading profits may be subject to capital gains tax like stocks or real estate. For businesses engaged in cryptocurrency trading, a standard 20% corporate income tax may be required. There are also suggestions to impose a 5-10% personal income tax on profits from non-fungible tokens, a withdrawal fee of 1-5% on profits for foreign investors, and to consider offering a 10% corporate income tax incentive for pilot exchanges (for the first five years), as well as exempting digital asset transactions from value-added tax to promote liquidity.

4. Outlook on Vietnam's Cryptocurrency Policy

The attitude of the Vietnamese authorities towards encryption assets has undergone a significant shift from early caution and restrictions to active exploration and regulation. This transformation reflects a pragmatic balance between controlling financial risks and seizing opportunities for the development of the digital economy. Vietnam has included blockchain technology, digital assets, and encryption currencies in its national strategic technology list, alongside cloud computing and artificial intelligence.

Based on the current development trends and the clear signals from the government, there is reason to believe that Vietnam's future encryption asset policy will continue to exhibit characteristics of "inclusive prudence." Specifically, the following predictions can be made regarding the future direction of Vietnam's encryption asset policy:

1. More regulatory details will be introduced and implemented. With the enactment of the "Digital Technology Industry Law," more supporting regulations and guidance will be issued, clarifying the licensing requirements, operational standards, and consumer protection measures for encryption asset service providers. Regulatory sandboxes will continue to play a role, providing a controlled testing environment for new business models and technologies.

2. The tax framework will be gradually improved and implemented. It is expected that the Ministry of Finance will accelerate the introduction of specific tax details, clarifying the taxation methods, rates, and collection processes for various types of encryption activities. The successful experience of the e-commerce platform's tax system is likely to be introduced to encryption trading platforms. Vietnam may also develop differentiated tax policies for different types of encryption activities.

3. Digital assets will gradually integrate with the traditional financial system. The Vietnamese government will continue to promote the integration of digital assets with the traditional financial system, such as exploring the development of encryption banks, national encryption exchanges, and stablecoins to build a more modern financial infrastructure.

In summary, Vietnam is likely to become a "compliance innovation" model for the cryptocurrency economy in Southeast Asia, competing with Thailand and Malaysia in the Southeast Asian crypto market. Vietnam has a large user base for cryptocurrency and a relatively clear strategy for the development of its digital economy. Recent legislation, such as the "Digital Technology Industry Law" and the ongoing pilot tax schemes and sandbox mechanisms, indicate that it is transitioning from a "gray area" to "clear regulations." This transformation will allow it to stand out in the Southeast Asian region as a market that embraces innovation while ensuring compliance. Vietnam's experience may provide a viable template for other emerging markets and developing countries on how to gradually establish a sound regulatory and tax system for cryptocurrency assets without stifling innovation, thereby converting the potential of the cryptocurrency market into a driver of national economic growth.