Da Nang authorizes trial conversion of digital assets at 3 locations

Under a decision issued by the municipal administration on December 31, Dragon Lab JSC is permitted to conduct a regulatory sandbox trial of its solution known as MIMO, a non-custodial intermediary platform that facilitates the conversion of digital assets, specifically USDT, into Vietnamese dong (VND), and the reverse.

Crypto company Tether's dollar-pegged cryptocurrency, known as USDT, has a market capitalization of more than US$169 billion, Reuters reported, citing crypto data provider CoinGecko.

The pilot program will be implemented under the guidance and supervision of the Da Nang Department of Science and Technology.

Testing will be confined to three designated locations in Hai Chau Ward, including the Da Nang Software Park at 2 Quang Trung Street, Da Nang Software Park No. 2 on Nhu Nguyet Street, and the Da Nang Innovation Startup Support Center at 58 Nguyen Chi Thanh Street.

Dragon Lab describes MIMO as the first and only solution in Vietnam to be licensed for trial implementation of a non-custodial intermediary model for converting digital assets such as USDT into fiat currency.

The controlled trial is intended to enhance user safety while supporting transactions within a clearly defined regulatory framework.

The trial license will remain valid until December 17, 2028.

As regulations on digital assets took effect on January 1, sandbox models such as this are expected to help establish transparent operating procedures, improve compliance capacity, and reduce risks for users involved in digital asset transactions and value conversion.

In particular, the trial is expected to help address concerns related to the origin of funds and prevent the misuse of digital assets to legitimize illegal transactions.

The MIMO testing will first be executed in Da Nang before being expanded throughout Vietnam, with priority given to major cities such as Hanoi and Ho Chi Minh City, as well as localities with high demand for digital asset exchange.