Vietnamese authorities have cautioned citizens about the risks tied to the Pi Network, warning that its token lacks real-world utility and remains highly speculative.
On March 2, the Hanoi City police noted a surge in interest surrounding the token, which they attributed to aggressive social media promotions and recent exchange listings following its mainnet launch.
Vietnam Issues Warning on Pi Network Risks and Speculative Nature
The officials warned that Pi Network markets its mining application with unrealistic expectations of continued price increases. According to them, this draws in users who may not fully understand the risks.
The authorities also clarified that cryptocurrencies, including PI, do not have legal asset status in Vietnam. As a result, any disputes or financial losses tied to Pi-related transactions may not be protected by law.
Moreover, the law enforcement agency warned that Pi Network could be misused for fraudulent activities. They highlighted the risk of scams involving fake tokens designed to steal user data and launder money.
“Pi lacks practical applications; its value is self-assigned, leading many to misunderstand its true worth. Some parties might exploit Pi for illegal activities—for example, by creating counterfeit Pi cryptocurrencies to raise funds for fraudulent asset misappropriation, or by developing fake Pi applications to unlawfully collect user data or to gain unauthorized access for defrauding assets or cryptocurrencies in Pi transactions,” the authorities stated.
Additionally, digital assets are not recognized as legal payment methods in the country, and any entity using them for transactions could face penalties or legal action.
“Any individual or organization that uses cryptocurrencies in general, and Pi in particular, for payment activities will be subject to penalties under Clause 6, Article 26 of Decree 88/2019/ND-CP (with fines ranging from 50,000,000 VND to 100,000,000 VND), or may face criminal prosecution under Article 206 of the Penal Code for,” the police wrote.
Considering this, the government urges citizens to verify information before investing and to avoid spreading unverified details on social media. According to the authorities, sharing false or misleading information could result in legal consequences.
“Do not circulate, transmit, or post unverified false information regarding cryptocurrencies in general—and Pi in particular—that could incite public alarm or lead to legal violations,” they added.
This strict regulatory stance aims to protect investors and maintain market integrity. Notably, Vietnamese officials have been scrutinizing Pi Network for years.
Nearly two years ago, they investigated the project, citing concerns over its multi-level marketing (MLM)-like structure and its potential to harm investors.
Meanwhile, the regulatory warning has had an immediate market impact. According to CoinMarketCap data, Pi token prices fell by 18% within the last 24 hours.
Just within a week of its launch, PI had reached an all-time high of $2.98, marking a 20% increase over the past week. Now, it trades at around $1.75, a drop of more than 40% from its peak.
Investors now face uncertainty and must exercise greater caution when dealing with the token.
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