Vietnam finds itself facing heightened scrutiny after being placed on the Financial Action Task Force (FATF)’s grey list, a designation signaling deficiencies in its efforts to combat money laundering and terrorist financing. This move has damaged Vietnam’s international reputation, raising concerns among foreign investors and banking institutions. However, the country boasts one of the highest crypto adoption rates globally. Vietnamese authorities are now pivoting with a strategic focus on establishing clear cryptocurrency regulations, including licensing exchanges and enforcing Know-Your-Customer (KYC) standards, aiming to meet FATF standards and curb illicit finance. This strategy could unlock new waves of institutional capital and reshape Vietnam’s image as a compliant digital economy.