Vietnam police warn about the PI network

Vietnamese authorities have issued recommendations regarding PI network tokens and warn users that it is illegal to use them for payment. In a Facebook announcement, Vietnam police observed that the recent increase in the use of PI tokens in daily transactions within the country could attract sanctions and criminal prosecutions.

Authorities say cryptocurrencies cannot be used as a payment instrument in the country as they violate existing laws. It said that organizations accepting PIs for payments could face sanctions under Article 6, Article 6 of the revised Order 88/2019/nd CEP.

Police added that the sanctions could be variously subtle between Vietnamese dollars of 50 million and 100 million, or that such entities could be charged for violating regulations relating to banking activities under Section 206 of the Criminal Code.

Meanwhile, the statement is a response to the widespread use of tokens for payment by multiple individuals and businesses across the country. Vietnam has the highest level of crypto adoption in the world, and Pi Crypto became prominent there, especially after some exchanges listed the tokens.

This is not the first time that domestic authorities have warned about using digital assets in transactions. Previously, the Vietnam Provincial Bank had warned against using crypto for payments.

Vietnamese authorities say PI is not an asset

Meanwhile, the country’s government officials have further noted that PIs have no real value as current prices are based solely on estimates. As they said, PIs and cryptocurrencies are generally not considered assets under Vietnamese law. Therefore, users should be aware of the risks of investing in PI.

We highlighted some of the potential risks associated with tokens. This includes scammers who use it for illegal activities by creating imitation tokens for modest investors, collecting user data, and creating tokens that mimic fake applications to allow fraudsters to access victims’ accounts.

Authorities also warn that posting information about PI and other digital assets could violate the law.

It said:

“We are not permitted to provide, send or post false and unverified information about cyberspace related to cryptocurrencies, cryptocurrencies in general, and piecoin in particular.

The Department of Cybersecurity and Crime Prevention has called on people investing in PIs to carefully investigate all information before investing. “To avoid the risk of property damage and to encounter unfortunate events.”

PI drops by 17% in 24 hours

The Pi Token has a major plunge in its value today, down 17.6% in the last 24 hours to $1.73. According to Coingecko data, tokens still have a 21% increase in the past seven days. This is mainly because it is listed on exchanges such as OKX, Bitget, and MEXC.

But it has attracted criticism, and some stakeholders in the crypto community see it as a fraudulent project. They focus on the lack of listings with major exchanges and zero transparency as the main reason for this view.

Some users complain that they can’t claim a PI token because their PI network team has not checked their customer (KYC) processes. The KYC process is mandatory for users to access the PI, and many long-term users say they have not yet passed the stage.

In its response, the PI Network team noted that the deadline for mainnet migrations was extended until March 14, 2025, which would increase the time for people to verify their balance and move to the mainnet.