Vietnam Legalizes Crypto, Sets AI Boundaries in Ambitious Digital Technology Law

Vietnam Legalizes Digital Assets and Sets Limits on AI Use

Vietnam has taken a significant step by legalizing digital assets through the approval of the Law on Digital Technology Industry on June 14. The National Assembly passed the bill with overwhelming support—441 out of 445 lawmakers voted in favor. This new legislation clearly defines digital assets as products created, issued, transferred, and authenticated via blockchain technology, with recognized prices and property rights under civil law.

The law covers various digital asset types, including security tokens, payment tokens, utility tokens, and mixed tokens. From January 1, 2026, these assets will be regulated with clear property rights, providing legal certainty for investors and businesses involved in digital asset activities.

Key Features of the Digital Asset Framework

One notable aspect is the classification of digital assets into three categories:

• Virtual assets: Used for exchange or investment purposes.
• Crypto assets: Utilize encryption technology for authentication during creation, issuance, storage, and transfer.
• Other digital assets: Those that do not fall under virtual or crypto asset definitions.

The law explicitly excludes securities, digital legal currency, and other financial assets from virtual and crypto asset categories. These will either be considered as other digital assets or regulated under different financial laws.

Ensuring Security and Compliance

To improve network safety and combat illicit activities, the law mandates measures to prevent money laundering, terrorist financing, and proliferation financing. These provisions align with efforts to remove Vietnam from the Financial Action Task Force's (FATF) grey list, where it has been placed since June 2023 due to concerns over financial monitoring.

AI Regulation and Restrictions

Alongside digital assets, the law addresses artificial intelligence development. Vietnam encourages AI innovation but restricts harmful applications. Specifically, AI systems are banned if they:

• Influence an individual's behavior without their awareness.
• Use techniques to deceive or materially distort decision-making, causing significant harm.
• Evaluate or classify individuals based on social behavior.
• Exploit vulnerable groups such as the elderly, disabled, or economically disadvantaged.

These restrictions aim to protect individual rights while fostering responsible AI growth.

Incentives to Drive Digital Technology Growth

Vietnam has set ambitious targets to become a leading digital technology hub, aiming for 150,000 digital technology enterprises by 2035. The law offers various incentives for companies operating in this sector, especially in semiconductor manufacturing, AI, and digital infrastructure.

• Corporate income tax rates as low as 10% for 15 years.
• Exemptions from import duties and land rental fees.
• Personal income tax exemptions for experts and scientists working on technology projects for five years.
• Additional incentives for large-scale investments exceeding $80 million in data centers or $160 million in semiconductor production.

These benefits aim to attract investment and talent, supporting Vietnam’s goal of boosting national economic growth by 8% this year.

Outlook for Finance and Legal Professionals

For finance and legal professionals, this law introduces new regulatory frameworks and compliance requirements. Understanding the classification of digital assets will be critical when advising clients or managing digital asset portfolios. Additionally, the AI provisions highlight the need for careful oversight in AI system deployment to avoid legal breaches.

The upcoming implementation phase will clarify business conditions and regulatory oversight, making it essential for practitioners to stay informed. This legal clarity should encourage safer, compliant growth in Vietnam’s digital economy.

For more insights on AI regulations and digital technology training, visit Complete AI Training.