How Vietnam is using crypto to fix its FATF reputation

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• On 14 June 2025, the Vietnamese National Assembly passed the Act on Digital Technology Industry, effective 1 January 2026.

• Vietnamese cryptal regulation is part of a wider effort to meet FATF standards after it was in 2023 in 2023 due to AML/CFT deficiencies.

• The law distinguishes between crypto assets (eg Bitcoins, Ether) and virtual assets (non -financial digital items), with the exception of CBDC and securities.

• The law mandates identity checks, transaction monitoring and the obligation to detect and prevent fraud with digital active fraud, and solve gaps in promotion.

On June 14, 2025, the Vietnamese National Assembly passed the Act on Digital Technology Industry and signaled a significant shift in the way the country manages digital assets. With effect from 1 January 2026, this law present Clear regulations for the rapidly growing Vietnam Cryptocurrency. It represents a wider attempt by Vietnam to improve his financial reputation and end the list of gray working group for financial action (FATF).

Based on this Act, Vietnam conducted a comprehensive legal framework for digital assets. This includes the classification of digital assets, licensing requirements, and robust compliance mechanisms in accordance with international standards. The aim of the regulation of its crypt sector is to focus on FATF concerns, increase investors’ confidence and stand as a center of digital economy in Southeast Asia.

This article examines how crypto reform supports the FATF return strategy in Vietnam. He plunges into Vietnamese crypt law and explains how FATF is concerned.

What is Fatf

FATF was founded in 1989 or a group of seven, is a global organization that sets standards to prevent money washing, terrorists financing and other threats to the financial system. FATF creates policy and oversees their adoption in Member States. G7 is an intergovernmental organization including seven leading advanced economies: Canada, France, Germany, Italy, Japan, Great Britain and the USA.

FATF provides recommendations for the formation of national laws and assessing compliance with regulations through mutual assessments. Countries that do not meet FATF standards can be placed on a “gray list” or “blacklines”, which can damage their global financial and investment environment.

Did you know that? In accordance with the rules of Fatf Vietnam hopes to attract global VC and cryptocurrenciesTo convert regulatory clarity into a tool for economic development.

Status and Steps to the financial reform of Vietnam’s Fatf Gray

In June 2023, Vietnam was placed on the Fatf Gray list, officially called “jurisdiction in increased monitoring” after he agreed to solve significant shortcomings in his Anti-Money Launderning (AML) and face the financing of terrorism measurements (CFT).

FATF quoted problems such as insufficient supervision of financial institutions, weak customer DUE diligence (CDD) and insufficient regulation of virtual assets service providers. This also raised concerns about the efforts of Vietnam to fight unlawful financing linked to the dissemination of weapons.

Vietnam must be removed from the gray list, it must fully implement the FATF action plan. This includes strengthening AML law, improving regulatory supervision, strengthening CDDs and ensuring effective prosecution of financial crimes.

FATF monitors proceed through updates and visits. Once the compliance is proven, the Member States vote in a plenary meeting to decide to remove and indicate renewed confidence in the country’s financial integrity.

Vietnamese Act on Digital Technology Industry

Vietnam has become the first country in the world to pass the independent law devoted to the industry of digital technologies. The law was passed in June 2025; The implementation begins in January 2026.

Here are the key peaks of the Vietnamese Act on the Industry of Digital Technologies (Digital Technology Act):

• Ambitious growth: The aim is to create 150,000 digital technology companies by 2035 as part of the “Make in Vietnam” initiative.

• Defined: The law separates crypto assets (such as Bitcoin, Ether) from virtual assets (non -financial digital items), allowing more accurate risk -based control according to FATF instructions.

• Strong incentives: It offers tax relief, grants and imports for startups, small and medium -sized enterprises and foreign technological investors.

• Labor Support: Vietnamese digital experts will receive five years of tax exemption; Foreign experts receive five -year visas and a work permit request.

• AI Regulation and Digital Asset Regulation: It introduces AI -based AI -based risks and legal rules for crypto and virtual assets.

• Regulatory quarantine: It allows controlled testing of blockchain technologies, defi and virtual assets to support innovation.

A closer view of the Vietnamese crypto law

The law divides digital assets into two categories:

• Virtual Asset: Non -financial digital items used for exchange or investment. They exclude securities, Digital Currency Currency Bank (CBDC)Fiat currencies and traditional financial instruments.

• Crypto Assets: Digital assets that use encryption or technology of blockchain to manage, transfer and storage. Like virtual assets, they do not include securities or CBDC.

This classification of digital assets facilitates a structured legal framework that allows regulated use of these assets and at the same time distinguishes these categories from common financial products. It performs a government with license, supervision and operating instructions for each category and signals a shift towards transparency and compliance.

The law excludes securities, CBDC and traditional financial instruments from these categories.

The key changes for the startups of the crypt include legal recognition, the framework for regulation and tax incentives. The law also includes the provisions for the pilot mechanisms of quarantines for virtual asset products and services. For blockchain startups, tax exemptions, subsidies and workforce training programs are available.

Did you know that? Crypto Vietnam Law enables authorities to cooperate international on fraud with digital assets and improve cross -border investigation and reduce global crypto crimes.

As Vietnam dealt with fears Fatf

The Vietnamese law in the field of digital technology industry is more than a mere domestic milestone to a critical step towards the alignment of the Vietnamese digital sector with FATF standards on AML and against the financing of terrorism.

The key main points include:

• Crypto officially legalized: Vietnamese Act 2025 ends legal ambiguity by recognizing crypto ownership and use and aligning with FATF pressure for clear national regulation of digital assets.

• Defined: The law separates crypto assets (such as Bitcoin, Ether) from virtual assets (non -financial digital items), allowing more accurate risk -based control according to FATF instructions.

• AML and CFT integration: Cryptocurrencies and Wallets Providers fall under state supervision and help Vietnam solve FATF concerns about weak Customer’s accounting and illegal financing.

• Stablecoins expelled: Fiat-opposed stablecoins are regulated separately According to financial laws, ensuring consistent supervision and reducing systemic risk in accordance with the FATF -based approach.

• Regulatory clarity for businesses: Clear rules attract startup crypto and help formalize this industry, making it easier to monitor transactions, KYC promotion and reduce capital flight.

These reforms directly support the Vietnam goal to end the FATF Gray list by introducing a transparent and controlled cryptal environment that is in line with global standards.

Legislation also seizes the government to define licensing rules, mechanisms of asset classification and supervision mechanisms and provides a provider of services and financial institutions in a regulated environment.

Through these measures, Vietnam signals its obligation to meet FATF standards and regain international confidence in its financial ecosystem.

Vietnamese New Authorities Krypto Rights against Fraud with Digital Property

The law provides Vietnamese bodies a clear legal framework for investigation, prosecution and discourage fraud with digital property. Previously, the absence of legal instruments was hampered by enforcement efforts. The Act introduces compliance obligations such as identity controls, transaction monitoring and reporting obligations.

Two recent cases of fraud emphasize the urgency of these reforms:

• In February 2025 Authorities arrested Four individuals per bitmater, a false crypt scheme that cheated on 200 victims of more than 4 billion Vietnamese dongs (~ 157 $ 300).

• In December 2024 Police Hanoj disturbed Fraud involving a million smiles that used deceptive ads to support cryptocurrency called QF, resulting in a loss of approximately $ 1.17 million.

The law approved by the Vietnamese National Assembly includes measures of AML and CFT, which requires that crypt services providers implement compliance procedures such as identity controls, transactions monitoring and reporting obligations.

The provisions of the law facilitate greater cooperation with international regulators. Vietnam facilitates cooperation with foreign authorities on cross -border investigations by aligning its cryptal regulations with global standards.

This law is particularly important for solving multinational crypto crimes where assets and suspects often exceed jurisdictions. Vietnam by dealing with legal gaps and strengthening regulatory coordination has strengthened his national efforts and reputation in the global financial community.

Did you know that? Being on the FATF Gray list not only does not hurt the reputation; It can cause foreign banks to hesitate to work with domestic institutions, limit the flow of capital and investment.

Opening the door of digital innovation

The new crypto law Vietnam is part of its ambition to become a digital technology center in Southeast Asia. Formally recognizing the crypto assets the government welcomes innovation and attracts global startups and investors.

The law offers considerable incentives for technology companies, including:

• Tax cuts for Blockchain, AI and Chip.

• Subed access to digital campuses and innovation parks.

• Support for grants and infrastructure for research and development in semiconductors and cloud technologies.

To support this ecosystem, the government also invests in digital education through vocational programs, cooperation in the University of University and Technology Preparation and ensures a qualified workforce for the future.

The aim of these combined efforts is to establish Vietnam as the regional leader of digital innovation.

Vietnamese global image and future FATF reviews

The Vietnamese cryptocurrency Act is the central point of its FATF compliance strategy. By defining virtual and crypto assets and promoting the rules for licensing, aml/kyc, Cyber ​​security And supervision of the transaction, the country coped with the recommendation of FATF 15, one of the key questions quoted during its gray list.

In parallel, the Vietnam Bank has tightened the AML rules, updated the risks, standardized reporting procedures, and strengthened the CDD in the revised orbital 09. If they were fully performed by January 2026, these reforms could prepare these reforms to remove Vietnam from the gray list.

The clear regulatory environment also increases the trust of investors. Legalized exchange operations and strong standards of compliance are assured by international crypto companies, risk capitalists and technology companies. In addition, smooth integration between crypto and traditional banking increases access to capital markets and institutional finance.

Vietnamese cryptal regulation eventually solves not only FATF concerns, but also increases its global image as a transparent and innovative economy.