On 26/8, the Da Nang People's Committee granted Basal Pay permission to participate in a controlled trial within the fintech sandbox framework in Da Nang. The project utilizes blockchain technology for domestic money transfers for international tourists. This marks the first time Vietnam has authorized a trial project for cryptocurrency conversion.
Developed by AlphaTrue Solutions, the project aims to address transaction bottlenecks faced by international visitors to Vietnam. Instead of going through multiple intermediaries, the application allows direct conversion between cryptocurrency and fiat currency in mere seconds. According to the developers, transaction costs are approximately 30% lower compared to traditional methods.
The 36-month trial will consist of 5 phases: platform development, limited operation, scaling, evaluation, and official launch. The entire process will be overseen by the city and the Department of Science and Technology to ensure legal compliance and assess the feasibility of integrating blockchain into the traditional financial system.
The solution is designed to comply with Financial Action Task Force (FATF) regulations. Accordingly, all identifying information of senders and recipients during transactions will be collected and stored for at least 5 years. This mechanism, already in place for payment intermediaries like banks and international exchanges, enables authorities to monitor money flow, combat money laundering and terrorist financing, and enhance the transparency of the global financial system.
In the first 7 months of the year, Da Nang welcomed nearly 11 million visitors, generating an estimated 18,000 billion VND in tourism revenue. The city is also promoting controlled trials of new models like digital assets and digital financial services to attract investment funds and startups. Da Nang is also one of two cities chosen to develop into an international financial center with special mechanisms and policies.
According to Chainalysis data, Vietnam ranks 5th globally in cryptocurrency adoption, with over 17 million users. However, much of this activity takes place in a "legal gray area" without clear regulatory oversight, posing risks of money laundering, fraud, and lost tax revenue. Therefore, the sandbox is considered a tool to create a space for testing new technologies while ensuring management within a controlled environment.
Phuong Dung
