Danang launched Basal Pay, a crypto asset conversion project, under a regulated fintech sandbox.
According to a press release published on KuCoin’s website, the crypto exchange signed a memorandum of understanding (MoU) on Wednesday with the Vietnam Blockchain and Digital Assets Association (VBA) and 1Matrix Joint Stock Company.
KuCoin claims the three-way partnership is meant to develop blockchain infrastructure, advance digital asset applications, and promote digital economic growth nationwide.
“Vietnam is emerging as one of the world’s most dynamic hubs for blockchain and digital assets, fueled by a young, creative, and tech-savvy community ready to pioneer global innovations,” Damen Chen, Vice President and Head of Group Commercial at KuCoin told the press.
The Southeast Asian country’s pivot from an unknown legal stance on crypto to a framework proposal has opened doors for KuCoin to enter its jurisdiction.
At Da Nang Finance and Tech Week earlier this year, Chen talked about the trading platform’s compliance measures like real-time order book data, regular proof-of-reserves reporting, and independent audits to combat fake volumes.
The trading platform aims to be part of the first crypto businesses to operate under Vietnam’s digital technology law that was approved by the government in June. The law, slated to take effect in January 2026, could help the country achieve its 150,000 crypto startup economy by 2035, as proposed by the state-sponsored “Make in Vietnam” initiative.
In Vietnam, KuCoin is working through its investment arms, KuCoin Labs and KuCoin Ventures, to fund early-stage blockchain projects and, with universities, to develop local talent.
The VBA, established under Decision No. 343/QD-BNV by the Ministry of Home Affairs in April 2022, is Vietnam’s first official organization dedicated to blockchain technology.
Its mission includes research, standardization, evaluation, and the promotion of blockchain adoption across sectors. Together with 1Matrix, the VBA is helping the country strengthen its position in the Financial Action Task Force (FATF) rankings, the global body that sets standards against money laundering and terrorism financing.
Vietnam is currently on the FATF “gray list” because of its lack of anti-money laundering laws, particularly in regulating virtual assets.
On July 25, the association announced its new name: Vietnam Blockchain and Digital Assets Association will replace its previous title, the Vietnam Blockchain Association. At its General Meeting, the VBA approved the addition of eight new executive committee members, increasing its leadership body to 28.
Chairman Phan Đức Trung was appointed alongside three vice chairpersons: Nguyễn Vân Hiền, Nguyễn Trọng Khang, and Phan Chiến Thắng.
KuCoin’s MoU comes against the backdrop of the People’s Committee of Danang approving Basal Pay, the nation’s first crypto asset conversion project. Operated within the city’s controlled fintech sandbox to test blockchain asset service provisions under Resolution No. 57/NQ-TW.
Basal Pay was developed by AlphaTrue Solutions JSC, a VBA member, in compliance with the Financial Action Task Force’s Travel Rule.
According to the National Statistics Office, the city welcomed nearly 11 million tourist arrivals this year, which pushed service revenues to an estimated VND18 trillion ($682.7 million). Vietnam’s state-controlled Military Bank partnered with Upbit’s parent company Dunamu to launch the country’s first digital currency exchange, Cryptopolitan reported in August.
