The country of Vietnam may have just come up with a simple yet effective solution for crypto categorization. All around the world, financial regulatory bodies struggle to come up with a definition of “what even is cryptocurrency?”
Notoriously, the United States’ Securities and Exchange Commission has wrestled with that notion for several years, with the previous administration keen on categorizing most digital assets as securities, while the current administration appears more inclined to adopt a balanced approach, differentiating between various types of digital assets rather than applying a blanket classification.
Vietnam’s Law on Digital Technology introduces a clear framework for crypto categorization, separating virtual assets from crypto assets—a move that could provide a model for other nations struggling with regulatory ambiguity.
Traditionally, “virtual assets” refer to digital representations of value that are not necessarily decentralized. While this definition can also encompass crypto assets, it can also include gaming tokens, loyalty points, digital collectibles, and centralized digital currencies, which do not rely on blockchain or cryptographic security.
This distinction allows regulators to differentiate between digital assets that function within traditional financial or corporate ecosystems versus those that are decentralized and blockchain-based, like Bitcoin and Ethereum.
Also, categorizing crypto as a thing of its own marks a major step forward in effectively regulating it moving forward. Vietnam’s crypto law will be in effect by January 2026, laying the groundwork for structured oversight and future regulatory developments.
Other nations like Switzerland, El Salvador, Japan, and Singapore have already taken similar steps to formally classify crypto as a distinct asset class within their regulatory frameworks. Vietnam’s approach aligns with this growing trend, but what sets it apart is the straightforward categorization.
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