Da Nang grants permission to Dragon Labs to act as a unit for converting USDT to VND

The initial steps of the legal framework

Da Nang has officially licensed a local enterprise to conduct a pilot program for converting between USDT and Vietnamese Dong (VND) using a non-custodial mechanism. This marks one of the most concrete legal trials related to stablecoins in Vietnam to date, and is a notable departure from the country's traditionally cautious stance on cryptocurrency-related financial activities.

Importantly, this is not full approval. The pilot framework allows managers to:

• Observe the practical use of stablecoins.

• Review compliance and reporting mechanisms.

• Assessing risks related to anti-money laundering, capital flows, and consumer protection.

• Collect data before drafting national-level policies.

Vietnam has long been in a legal gray area regarding cryptocurrencies. Digital assets are not recognized as legal tender, yet their use is widespread among individuals and businesses. By allowing a pilot program to convert USDT to VND, local authorities are signaling a shift toward practical experimentation rather than outright avoidance. Da Nang, as a technologically advanced city, is positioning itself as a "playground" for financial innovation.

Non-custodial asset model

The decision to require a non-custodial mechanism is particularly important. Under this structure, the licensed business does not directly hold customer funds. Users retain control of their wallets, reducing counterparty risk and limiting the company's role to support and compliance monitoring only.

MIMO acts as a regulated intermediary, facilitating the conversion of USDT to VND without holding users' funds — a key differentiator that reduces counterparty risk compared to traditional custodial exchanges or OTC exchanges.

Dragon Lab emphasizes that MIMO is the first and only solution in Vietnam to receive an official license for this non-custodial model. This platform aims to:

• Enhance user safety through transparent, auditable processes.

• Supports compliant deposit/withdrawal procedures in a tightly controlled testing environment.

• Minimize risks associated with illicit money flows and money laundering.

The pilot program, overseen by the Da Nang Department of Science and Technology, aligns with Vietnam's broader "legal framework" philosophy—allowing for controlled experimentation while safeguarding monetary sovereignty and financial stability.

Assessment and Conclusion

Da Nang's approval of the MIMO pilot program for non-custodial USDT-VND transactions is not a complete acceptance of cryptocurrency—but rather a deliberate, tightly controlled experiment aimed at collecting data, testing compliance mechanisms, and providing information for further regulatory steps in Vietnam.

As the country enters 2026 with official legal recognition of digital assets, this initiative underscores a pragmatic approach: leveraging innovation while safeguarding monetary control, financial stability, and international compliance obligations.

For millions of cryptocurrency users, international traders, and the global stablecoin ecosystem in Vietnam, the pilot program in Da Nang represents the most concrete step to date — a small but significant bridge between the world's second-largest stablecoin and one of Southeast Asia's most dynamic retail cryptocurrency markets.

Disclaimer: The information presented in this article is the author's personal opinion in the field of cryptocurrency. This is not financial or investment advice. All investment decisions should be based on careful consideration of your personal portfolio and risk tolerance. The views expressed in this article do not represent the official stance of the platform. We recommend that readers conduct their own research and consult with experts before making any investment decisions.

Compiled and analyzed by HCCVenture

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