Cryptocurrency (crypto, crypto-assets) is often perceived as a “grey zone”: not issued by any state, transacted across borders, hard to trace. A widespread misconception is that “crypto is not legally recognised, so money laundering through crypto cannot be prosecuted”. This article analyses the current legal framework in Vietnam and affirms: money laundering through cryptocurrency can be prosecuted under criminal law.
1. Article 324 of the Penal Code: “money, assets” — the statute limits no type of asset
Money laundering is defined in Article 324 of the Penal Code. Clause 1 describes conduct involving “money or assets derived from crime”, including:
- Point (a): directly or indirectly participating in financial, banking or other transactions to conceal the illegal origin of money or assets derived from crime;
- Point (c): concealing information about the origin, true nature, location, movement process or ownership of money or assets derived from crime, or obstructing verification of such information;
- Point (d): committing any of the above acts in relation to money or assets known to have been obtained through transfer, assignment or conversion.
The key point: the statute uses the phrase “money, assets” without restricting assets to fiat currency or tangible property. Common techniques such as converting criminal proceeds into crypto (USDT, ETH, etc.), chain-hopping across multiple cryptocurrencies, using mixers, and routing funds through multiple wallets or exchanges to conceal their origin — all map directly onto clause 1 of Article 324, especially point (d) on assets “known to have been obtained through transfer, assignment or conversion”.
2. The currently applicable version of Article 324
Article 324 was amended by item 122 of Article 1 of Law No. 12/2017/QH14 (amending the Penal Code). Law No. 86/2025/QH15 (effective from 1 July 2025) did not amend Article 324 — the currently applicable text of the money laundering offence is Penal Code 100/2015/QH13 plus Law 12/2017/QH14, consolidated in Consolidated Document 135/VBHN-VPQH of 2025.
3. From 1 January 2026: crypto gains clear “asset” status — strengthening the basis for prosecution
The Law on Digital Technology Industry 71/2025/QH15 (passed 14 June 2025, effective 1 January 2026), Chapter V, provides:
- Article 46: digital assets are assets under the Civil Code represented in digital data;
- Article 47: classifies virtual assets (used for exchange or investment — excluding securities, digital forms of fiat currency and other financial assets) and encrypted assets (using encryption technology — with the same exclusions);
- Article 48: includes anti-money laundering in the contents of state management of digital assets.
This clear “asset” status further reinforces the legal basis for prosecuting crypto-based laundering. It should be stressed, however, that even before Law 71/2025 takes effect, the word “assets” in Article 324 never excluded crypto — the claim that “crypto is not recognised, so laundering through it is impossible” is wrong in both periods.
4. Crypto is not fiat currency — and that does not exempt prosecution
The consistent position of the State Bank of Vietnam (Official Letter 5747/NHNN-PC of 2017): cryptocurrency is not fiat currency and not a lawful means of payment in Vietnam. Resolution 05/2025/NQ-CP likewise requires crypto-asset transactions to be conducted in Vietnamese dong.
However, not being a lawful means of payment only means that crypto transactions are not protected as a payment method — it is entirely unrelated to whether money laundering through crypto can be prosecuted. These are two independent legal issues and must not be conflated.
5. Predicate offences: criminal proceeds “washed” through crypto also constitute money laundering
Money or assets derived from predicate offences — such as fraud (Article 174), gambling (Articles 321, 322), smuggling, embezzlement or bribery — when converted into crypto to conceal their origin, constitute money laundering. This includes “self-laundering”: the predicate offender themselves converting criminal proceeds into crypto to hide them.
6. Sentencing framework under Article 324 (summary)
- Individuals: clause 1: 1–5 years’ imprisonment; clause 2: 5–10 years; clause 3: 10–15 years; preparation of the offence: 6 months–3 years; supplementary penalties: fines of VND 20–100 million, bans from holding office or practising 1–5 years, confiscation of part or all of assets;
- Commercial legal entities: fines of VND 1–5 / 5–10 / 10–20 billion, or suspension of operations for 1–3 years; permanent suspension where Article 79 applies.
For quantitative thresholds and aggravating circumstances, see the article “What is the sentencing framework for money laundering in Vietnam?”.
7. Territorial jurisdiction
Under Articles 5 and 6 of the Penal Code: crypto-based laundering committed on Vietnamese territory is prosecuted in Vietnam; Vietnamese citizens or legal entities laundering money abroad may still be prosecuted in Vietnam. The cross-border nature of crypto is no “shield” against jurisdiction.
8. Pilot framework for the crypto-asset market: Resolution 05/2025/NQ-CP
Resolution 05/2025/NQ-CP of the Government (issued and effective 9 September 2025) pilots the crypto-asset market for 5 years, providing that:
- crypto-asset transactions are conducted in Vietnamese dong;
- organisations and individuals participating in the market must comply with anti-money laundering law;
- crypto-asset service providers have AML obligations, including storing transaction histories on servers located in Vietnam for at least 10 years and reporting periodically to the Ministry of Finance, the State Bank and the Ministry of Public Security.
In other words, even within the piloted market, AML obligations are mandatory — there is no “exemption zone” for crypto-asset transactions.
9. Decree 284/2026/ND-CP: administrative sanctions in the crypto-asset sector
Decree 284/2026/ND-CP (issued 16 July 2026, effective 1 September 2026) provides administrative sanctions in the crypto-asset and crypto-asset market sectors, including sanctions for AML violations such as failure to identify, update or verify customer information, or to issue internal AML rules. Specific fine levels should be checked against the original text of the Decree before application to any case.
10. Practical notes for individuals and organisations
According to published press reports, authorities have prosecuted money laundering cases in which suspects converted illicit funds into popular cryptocurrencies and then back into e-wallets or bank accounts. Key takeaways:
- do not engage in crypto transactions with counterparties of unknown fund origin;
- businesses with crypto-related cash flows should retain complete documentation and transaction histories;
- if a transaction is suspected of involving criminal proceeds, report it as required by law rather than helping to conceal it — facilitating concealment may itself constitute money laundering.
Conclusion
The answer to “can crypto escape prosecution?” is NO. Article 324 of the Penal Code limits no type of asset; Law 71/2025 (from 1 January 2026) recognises the asset status of digital assets; Resolution 05/2025/NQ-CP and Decree 284/2026/ND-CP build AML obligations right into the crypto-asset market. The view that “crypto is not recognised, so laundering is impossible” is a serious legal fallacy.
Note: This article is for reference only and is not legal advice. Each specific case must be assessed on its own facts, evidence and applicable law — please consult a lawyer for detailed advice.
For reference only, not legal advice. Content quality-checked by the AI Legal Council; not yet reviewed by a human lawyer.
