Da Nang: Controlled testing of “Basal Pay” software

On August 26, the People's Committee of Da Nang City officially licensed the Basal Pay project - applying blockchain technology in domestic transfers for foreign tourists, to participate in testing within the framework of the FinTech sandbox in Da Nang.

Mr. Le Anh Quoc, CEO of AlphaTrue Solutions Joint Stock Company, introduces the Basal Pay project.

This is the first time in Vietnam that an integrated solution of the Financial Action Task Force (FATF) Travel Rule standard has been deployed within a clear legal framework, complying with international requirements on transaction transparency and anti-money laundering and counter-terrorism financing (AML/CFT).

Basal Pay was developed by AlphaTrue Solutions Joint Stock Company to solve the bottleneck in foreign customers' exchange transactions. Instead of going through many intermediary layers, users can directly convert crypto assets to fiat money and vice versa in just a few seconds, with a cost about 30% lower than traditional methods.

The pilot program will last 36 months and include five phases: platform development, limited operations, scaling, evaluation, and official deployment. The entire process is supervised by the Department of Science and Technology and the Da Nang City government to ensure legal compliance and assess the possibility of integrating blockchain with the traditional financial system.

Mr. Tran Huyen Dinh, Chairman of Fintech Application Committee, Vietnam Blockchain and Digital Asset Association shared the project at the event.

Mr. Tran Huyen Dinh, Chairman of the Fintech Application Committee, Vietnam Blockchain and Digital Asset Association (VAB), Director of the Basal Pay project, commented that for Vietnam, the pressure from being put on the FATF grey list makes the sandbox even more urgent. Basal Pay is expected to be a pioneering step for Vietnam to demonstrate its AML/CFT compliance capacity, thereby strengthening financial transparency, creating a premise to escape the FATF grey list.

Basal Pay is supported by many international tourists thanks to its ability to convert crypto assets to fiat money quickly and transparently.

With the orientation of becoming a pioneering destination in technology, modernity, creating competitive advantages, Da Nang has issued a sandbox mechanism - a safe testing environment for new technology solutions, including the Fintech field. Encourage technology enterprises and startups to participate in research, development and application of Blockchain technology in practice. At the same time, collect data and practical experience to perfect the legal framework and policies to support the development of Blockchain technology in Vietnam.

Applying Blockchain in exchanging Crypto Assets with fiat money, complying with Travel Rule regulations is a new direction in Vietnam. Vietnamese law does not have clear regulations on the operation of this model, especially related to cross-border transaction verification, crypto asset management, and integration of international AML/CFT standards.

Testing a controlled solution is a necessary step, contributing to promoting the digital economy in Vietnam, attracting foreign capital flows and ensuring transparency, removing Vietnam from the FATF "Gray List" according to Decision 194/QD-TTG dated February 23, 2024 of the Prime Minister.

BUI TUAN

Source: https://www.sggp.org.vn/da-nang-thu-nghiem-co-kiem-soat-phan-mem-basal-pay-post810283.html