The Legal Context of Cryptocurrency in Vietnam
For many years, cryptocurrencies such as Bitcoin and Ethereum existed in a legal gray area in Vietnam. These digital assets have not been recognized as legal means of payment, while a comprehensive legal framework governing trading, investment, or taxation of cryptocurrencies has also been absent.
However, the rapid expansion of the digital asset market has pushed the Vietnamese government to gradually develop a new regulatory framework. International studies indicate that Vietnam is among the countries with the highest level of cryptocurrency adoption worldwide. An estimated 17 million Vietnamese citizens hold digital assets, with the market value believed to exceed 100 billion USD.
The large market scale and the increasing trading volume have turned cryptocurrency taxation into a major policy issue. Authorities are not only seeking to manage financial risks and prevent money laundering, but also exploring the possibility of creating a new source of tax revenue from the digital asset sector.
The Digital Technology Industry Law and Initial Recognition of Digital Assets
An important milestone in the legal development process was the passage of the Digital Technology Industry Law in 2025. This law establishes a legal foundation for the digital technology sector and introduces the concept of digital assets into Vietnam’s legal system.
The law will take effect on January 1, 2026 and is considered a significant step toward formally recognizing digital asset ownership in Vietnam. This move marks the end of a prolonged period of legal ambiguity, during which cryptocurrencies were widely used but not officially acknowledged in legal documents.
Nevertheless, the recognition of digital assets does not mean cryptocurrencies are accepted as legal payment instruments. Current regulations still prohibit the use of cryptocurrencies for paying goods and services within the official financial system.
Resolution 05/2025 and the Pilot Program for Crypto Asset Markets
On September 9, 2025, the Vietnamese government issued Resolution 05/2025 on the pilot implementation of a cryptocurrency asset market over a five year period. This resolution is the first official legal document establishing the groundwork for managing and operating the crypto market in Vietnam.
The resolution allows the creation of licensed crypto asset exchanges and sets strict requirements on capital adequacy, governance standards, and risk control for companies that provide crypto trading services. In addition, the document outlines the basic principles for taxation related to digital asset transactions.
According to the resolution, during the pilot period, tax policies for cryptocurrency assets will be applied in a similar manner to the current tax regime used in the stock market until a dedicated taxation system for digital assets is formally introduced.
This approach reflects the cautious stance of policymakers. Instead of immediately designing a completely new taxation framework, regulators have chosen to temporarily apply an existing model that is already familiar to investors and tax authorities.
Proposed 0.1 Percent Cryptocurrency Transaction Tax
Vietnam’s Ministry of Finance has proposed a specific taxation framework for cryptocurrency transactions. Under the draft proposal released in 2026, each crypto asset transfer may be subject to personal income tax at a rate of 0.1 percent of the transaction value.
This mechanism is similar to the taxation applied to stock trading in Vietnam. Rather than calculating taxes based on profits, the tax authority would apply a small fixed rate on the value of each transaction. This model is considered easier to manage because it does not require determining the original investment cost of each investor.
For domestic companies engaged in cryptocurrency trading or digital asset related businesses, profits generated from these activities would be subject to the standard corporate income tax rate of 20 percent. Taxable income would be calculated as the difference between the selling price and the purchase cost, including transaction related expenses.
Foreign institutional investors conducting crypto transactions through platforms operating in Vietnam may also be subject to a 0.1 percent transfer tax on the transaction value.
Personal Income Tax Regulations for Digital Assets
Another notable development is the proposed amendment to the Personal Income Tax Law. Under the revised regulation, income generated from transferring digital assets would be officially included in the list of taxable income categories.
The proposed tax rate is 0.1 percent on each transfer transaction, and the regulation is expected to take effect from July 1, 2026.
Before this amendment, Vietnam’s tax law did not clearly address taxation on cryptocurrency related income. Profits derived from digital asset trading were not explicitly listed among taxable income categories, creating a legal gap in tax management.
Including digital assets in the taxable income framework helps close this gap and provides a clearer legal basis for authorities to manage cryptocurrency investments in a more transparent manner.
Value Added Tax and Proposed Exemptions
Recent policy drafts from the Ministry of Finance also propose that cryptocurrency transfer transactions should not be subject to value added tax. This approach aligns with international practices, where many countries treat cryptocurrency exchanges similarly to financial transactions.
Exempting digital asset transactions from VAT helps prevent double taxation and reduces the financial burden on investors. At the same time, such a policy may help Vietnam maintain its attractiveness for technology companies and digital asset exchanges.
Potential Tax Revenue from the Crypto Market
According to estimates from economic analysts and research organizations, applying a 0.1 percent tax on cryptocurrency transactions could generate hundreds of millions of dollars in annual tax revenue for Vietnam due to the large trading volume within the country.
This suggests that even a very small tax rate could produce significant fiscal revenue without placing excessive pressure on investors. This is also one reason why many jurisdictions prefer a transaction based tax model rather than profit based taxation.
Challenges in Cryptocurrency Tax Administration
Despite the gradual improvement of the legal framework, collecting taxes from cryptocurrency activities still presents multiple challenges. The decentralized nature of the crypto market means that many transactions take place on international exchanges or private wallets that are difficult for regulators to monitor.
In addition, identifying the original purchase cost, verifying financial flows, and managing cross border transactions are complex tasks for tax authorities.
As a result, many experts believe that Vietnam needs to combine taxation policies with stronger transaction monitoring systems and anti money laundering regulations in order to ensure effective oversight.
Future Outlook for Cryptocurrency Tax Policy in Vietnam
Recent legal developments indicate that Vietnam is shifting from a cautious stance toward a controlled regulatory approach for the cryptocurrency market. The recognition of digital assets, the launch of a pilot crypto market program, and the proposal of taxation policies all represent important steps toward building a legal ecosystem for the digital economy.
In the coming years, Vietnam may issue dedicated decrees or circulars specifically addressing cryptocurrency taxation, replacing the temporary mechanism that currently mirrors the stock market tax model. Once these regulations are introduced, the legal system governing digital assets will become more comprehensive, balancing the goals of risk management, fiscal revenue generation, and technological innovation.
