PI network drops by 18% when Vietnamese authorities issue legal warnings

Vietnamese authorities have warned citizens about risks tied to the PI network, warning that the tokens do not have real-world utility and remain highly speculative.

On March 2, Hanoi Police Department noted a surge in interest surrounding tokens. This is due to aggressive social media promotions and recent exchange lists after Mainnet’s launch.

Warnings regarding the risk and speculative nature of Vietnam’s problem PI networks

Officials warned that PI networks are selling mining applications with unrealistic expectations of continuing price increases. According to them, this attracts users who may not fully understand the risk.

Authorities also revealed that cryptocurrencies, including PI, do not have legal assets status in Vietnam. As a result, disputes or financial losses related to PI-related transactions may not be protected by law.

Additionally, law enforcement has warned that PI networks could be misused for fraud. They highlighted the risk of fraud, including fake tokens designed to steal user data and wash money.

“PIs don’t have practical applications. The value is self-assigned and leads many to misunderstand its true value. Some parties may misuse PIs for illegal activities, such as by creating counterfeit PI cryptocurrencies to raise funds for the misuse of unauthorized assets, developing fake PI applications to illegally collect user data, or gain unauthorized access for unauthorized assets or encryption in PI procedures.”

Furthermore, digital assets are not recognized as a national legal payment method, and entities that use them in transactions may face penalties and legal actions.

“Individuals or organizations that use cryptocurrency in general, PI in particular, are subject to penalties under 6 fines for payment activities and Article 26 of Article 68 of 2019 (range from 50,000,000,000 VND to 100,000,000 VND to 100,000,000 VND).

With this in mind, the government urges citizens to review information before investing and avoid spreading unverified details on social media. Authorities say sharing false or misleading information can have legal consequences.

“Please do not cycle, send or post unverified misinformation about cryptocurrencies in general, and PI in particular.

This strict regulatory stance is aimed at protecting investors and maintaining market integrity. In particular, Vietnamese officials have been scrutinizing the PI network for many years.

Almost two years ago, they Surveyed The project cites concerns about structures like multi-level marketing (MLM) and the potential to harm investors.

Meanwhile, regulatory warnings had an immediate impact on the market. According to CoinMarketCap data, PI token prices have fallen 18% within the last 24 hours.

Within a week of launch, the PI reached an all-time high of $2.98, showing a 20% increase over the past week. It currently trades at around $1.75, down more than 40% from its peak.

Investors are currently facing uncertainty and need to be more careful when dealing with tokens.