Vietnam Begins Regulated Crypto Payments Sandbox in Da Nang

Vietnam has officially approved its first sandbox trial for crypto asset conversion, with Da Nang city authorizing a pilot program for Basal Pay, a blockchain-based payment platform developed by AlphaTrue Solutions. According to Vietnam Plus, the move marks the first regulated attempt in the country to integrate cryptocurrencies like Bitcoin and Ethereum into the formal financial system, while maintaining compliance with international anti-money laundering (AML) and counter-terrorism financing (CFT) standards.

Vietnam ranks fifth worldwide in crypto adoption, with more than 17 million users, according to the Vietnam Blockchain Association. However, much of this activity has been unregulated, exposing the market to risks such as fraud, tax evasion, and money laundering. The new sandbox aims to balance innovation with regulatory control.

Basal Pay: How the Pilot Works

The approved pilot will test crypto-to-fiat conversions, enabling users to convert digital assets into Vietnamese dong almost instantly. The system claims to lower transaction costs by around 30% compared with traditional methods.

AlphaTrue Solutions CEO Le Anh Quoc explained that Basal Pay uses a three-tier identification system and stores transaction records for five years, ensuring compliance with the Financial Action Task Force (FATF) Travel Rule. This allows authorities to monitor transactions while enabling efficiency for users.

The sandbox program is scheduled to run for 36 months under the supervision of the Da Nang People’s Committee and the municipal Department of Science and Technology. Its phases include:

• Initial platform development
• Limited-scale operations
• Wider rollout and evaluation
• Final assessment and deployment

Benefits for Tourism and the Financial System

Da Nang is a major tourism hub, welcoming nearly 10.7 million visitors by the first seven months of 2025 and generating over VND 18 trillion (US$683 million) in service revenue. According to Phan Thi Ngan, CEO of OneFin Vietnam and a partner in the project, Basal Pay could simplify payments for foreign tourists, making transactions quicker and cheaper while reducing dependence on intermediaries.

For the national economy, the system supports Vietnam’s goal of building international financial centers under the National Assembly’s Resolution No. 222/2025/QH15, which identifies Da Nang and Ho Chi Minh City as priority locations for financial innovation.

Regulatory Significance

The Da Nang sandbox reflects Vietnam’s growing focus on controlled digital asset adoption. While 29% of countries worldwide apply FATF digital asset standards, Vietnam’s program demonstrates an intent to align with global norms from the outset.

The IMF estimates that failure to meet FATF requirements can reduce GDP by 3–3.6% if a country is grey-listed. By ensuring compliance, Vietnam seeks to protect its economy while still encouraging fintech growth.

Addressing Market Risks

Vietnam’s crypto market is highly active but has often operated without clear oversight. This has led to fraud cases such as the recent Lao Cai investigation in August 2025, where police arrested 25 suspects linked to a large-scale crypto scam involving fake coins and pyramid schemes.

Sandbox programs like Basal Pay aim to reduce these risks by:

• Requiring identity verification (eKYC)
• Recording transaction histories
• Enforcing AML and CFT rules
• Providing authorities with direct oversight

Banks and Institutional Interest

The Ministry of Finance is drafting a resolution on the issuance and trading of crypto assets, which will require digital asset exchanges to hold at least VND 10 trillion in capital. At least 35% of this capital must come from banks, securities firms, fund managers, insurers, or technology companies.

Several Vietnamese banks with charter capital exceeding this threshold have shown interest in piloting exchanges. In addition, Dunamu Group, operator of South Korea’s largest exchange Upbit, has signed an MoU with Military Bank (MB) to explore establishing a crypto exchange in Vietnam.

These developments suggest that the Basal Pay trial could pave the way for broader institutional participation in the crypto market.

Broader Economic and Legal Context

The new Law on Digital Technology Industry, which takes effect on January 1, will provide Vietnam with its first clear legal framework for crypto assets. The legislation aims to protect investors, ensure transparency, and create a structured pathway for fintech development.

With annual crypto transactions estimated at US$105 billion, the sandbox strategy seeks to move activity from the informal sector into regulated channels, boosting government revenue while improving investor protection.

Conclusion

Vietnam’s approval of the Basal Pay pilot marks a critical step in integrating digital assets into its regulated financial system. The project balances innovation with compliance, reducing transaction costs and addressing long-standing risks in the crypto sector.

By aligning with FATF standards, applying a strict identification process, and testing blockchain integration within a controlled sandbox, Da Nang’s initiative sets a precedent for how Vietnam may regulate crypto markets in the future.

Resources:

1. Vietnam approval of first sandbox trial for crypto asset report: https://en.vietnamplus.vn/vietnam-approves-first-sandbox-trial-for-crypto-asset-conversion-project-post325410.vnp

2. Vietnam police dismantle crypto fraud ring, seize $16M in assets report: https://vietnamnet.vn/en/vietnam-police-bust-crypto-fraud-network-freeze-assets-over-usd-16m-2437159.html

3. Dunamu and MB Bank Partnership Report: https://www.koreaherald.com/article/10553213

4. Vietnam ranks second globally in cryptocurrency ownership: https://en.vietnamplus.vn/vietnam-ranks-second-globally-in-cryptocurrency-ownership-post304989.vnp