Vietnam Legalizes Crypto With New Law, Opening Doors for Crypto and Blockchain Innovation

Vietnam has officially legalized digital assets following the National Assembly’s approval of the Law on Digital Technology Industry on Saturday. Set to take effect on January 1, 2026, the landmark legislation marks a major step in Southeast Asia’s evolving crypto regulation landscape.

The law categorizes digital assets into two types: virtual assets and crypto assets. Both are defined as digital assets that rely on encryption or similar technologies for creation, issuance, storage, or transfer. However, they exclude securities, digital fiat currencies, and other financial instruments covered under existing financial and civil codes.

• Virtual assets are typically used for exchange or investment purposes.
• Crypto assets, while also investment-oriented, emphasize transaction validation through encryption, aligning with how cryptocurrencies like Bitcoin or Ethereum operate.

Vietnam’s Regulatory Clarity, AML, and Cybersecurity Mandates

To address concerns raised by international watchdogs such as the Financial Action Task Force (FATF), which placed Vietnam on its gray list in 2023, the law mandates strict compliance with cybersecurity and anti-money laundering (AML) standards. This brings Vietnam in line with global best practices, providing much-needed regulatory clarity for both domestic and foreign crypto entities.

A Contrast to China and India’s Past Bans

The move places Vietnam in stark contrast to other major Asian economies that previously enforced restrictive policies. Countries like China’s crypto ban, (though gradually easing through Hong Kong’s regulated framework), and India, which imposed high taxes and regulatory uncertainty, are only now beginning to open up to digital assets.

Vietnam’s proactive approach could position it as a crypto innovation hub in Asia, especially as other countries reevaluate outdated frameworks. According to Lynn Hoang, Country Director of Binance Vietnam, Vietnam should look toward models like the UAE rather than Hong Kong or the U.S., which she believes may no longer be suitable.

Implications for the Pi Network Ecosystem

The news may be especially significant for Pi Network and its community of pioneers. The protocol, which is still in its enclosed mainnet phase, has come under scrutiny due to its high node concentration in Vietnam. Recent reports from Piscan show that Vietnam hosts 195 out of 362 total Pi Network nodes, over 53% of the global total. At press time, 33 of 76 connected nodes were also located in Vietnam.

Source: Pi scan

This level of centralization has raised concerns about the network’s long-term decentralization and security. However, with Vietnam now formally recognizing and regulating digital assets, Pi Network’s Vietnam-based users and validators may soon operate in a clearer, more stable legal environment. This could enhance node reliability, improve governance, and offer new opportunities for ecosystem development.

Also read about Pi Network GCV

Conclusion

Vietnam’s digital asset law could be a turning point for regional crypto regulation, setting a benchmark for clarity and innovation in Southeast Asia. With China slowly recalibrating its stance via Hong Kong and India reassessing its policy framework, Vietnam’s move stands out for its directness and structure—offering both retail users and blockchain projects new confidence in operating within the country.

For projects like Pi Network, and for broader crypto adoption, Vietnam’s legalization signals the beginning of a more balanced, compliant, and growth-focused digital future.