Vietnam's New Crypto Law Boosts DePIN Growth in Southeast Asia

Vietnam’s recent legislative developments have positioned Southeast Asia as a growing hub for decentralized physical infrastructure networks (DePIN), according to Chloe Phung, co-CEO of U2U Network, during a recent Cointelegraph AMA [1]. In June 2025, the country passed its first law regulating the digital technology industry, with provisions covering digital assets and a regulatory sandbox for testing blockchain-based innovations. The law is set to take effect in 2026 and is expected to provide a clearer legal environment for blockchain businesses [1].

This regulatory clarity is already encouraging traditional institutions, including banks, telecom companies, and real estate firms, to explore tokenization and onchain infrastructure. Chloe emphasized that Vietnam can now lead in innovation without waiting for a fully developed blueprint. She pointed to the development of financial zones in cities like Da Nang and Ho Chi Minh City, which aim to offer more favorable tax systems and policy environments for Web3 projects [1].

Institutional interest in Vietnam’s crypto space is also on the rise, led by SSI Digital, the tech arm of Vietnam’s largest financial firm, SSI. SSI Digital was also a lead investor in U2U Network’s Series A funding round. The two are now collaborating on DePIN infrastructure, smart cities, and regulated Web3 applications [1].

According to BCG, Southeast Asia already accounts for over 40% of early-stage Web3 infrastructure investments in Asia. Chloe highlighted that the region’s young population, high mobile penetration, and underdeveloped traditional financial systems make it a natural fit for DePIN. “People here are already familiar with systems like ride-hailing and gig work; DePIN just offers a decentralized version of what they already know,” she said [1].

DePIN leverages unused local resources such as bandwidth and storage, redistributing them in exchange for incentives, offering a more cost-effective and scalable alternative to traditional infrastructure. U2U Network’s architecture is built for speed and scalability, with a DAG-based consensus system that achieves 650 ms finality and 17,000 TPS. The platform also supports subnets, allowing projects to operate on custom chains while remaining secured by the mainnet [1].

Real-world use cases of U2U’s DePIN technology include the U2U DePIN marketplace, where users can contribute bandwidth for on-demand access, and U2DPN, a decentralized private network with over 92 million sessions and 94,000 contributor nodes. The network is also enabling partners like Nubila to collect macro weather data and convert it into real-world assets (RWAs) for AI and infrastructure applications. Staex, another partner, is integrating DePIN into enterprise devices such as drones for zero-trust network management [1].

Looking ahead, U2U plans to expand its DePIN ecosystem with more real-world applications, including IoT and AI projects, provided they align with its modular architecture. A unified DePIN Client Hub is also in development, aiming to simplify resource sharing by allowing users and developers to connect through a single interface [1].

With continued support from SSI Digital and engagement with traditional institutions globally, U2U aims to deepen blockchain integration into sectors like supply chain operations in Vietnam. Chloe emphasized that the next phase of U2U’s growth will focus on delivering measurable impact and pushing blockchain into mainstream applications [1].

Source: [1] Southeast Asia to drive DePIN growth - AMA recap with U2U Network https://cointelegraph.com/news/southeast-asia-to-drive-depin-growth-ama-recap-with-u2u-network