Vietnam authorities have issued an advisory on the Pi Network token, warning users that using it for payments is illegal. In an announcement on Facebook, the Vietnam Police observed that the recent increase in the usage of Pi tokens for everyday transactions in the country could attract sanctions and criminal prosecution.
According to the authorities, virtual currencies cannot be used as a means of payment in the country as it breaches existing laws. It stated that any organization that accepts Pi for payments could face sanctions under Clause 6 Article 26 of Decree 88/2019/ND CEP as amended.
The police added that the sanction could be a fine varying between 50 million and 100 million Vietnamese dollars, or such entities could be prosecuted for violating regulations on banking activities under Article 206 of the criminal code.
Meanwhile, the statement is a reaction to the widespread use of the token for payments by several individuals and businesses within the country. Vietnam has one of the highest levels of crypto adoption globally, and the Pi crypto has gained prominence there, especially after several exchanges listed the token.
This is not the first time that authorities in the country have warned about using digital assets for transactions. Earlier, the State Bank of Vietnam had warned against using crypto for payments.
Vietnamese authorities say Pi is not an asset
Meanwhile, government authorities in the country further noted that Pi does not have any real value, as its current price is based solely on speculation. As they stated, Pi and cryptocurrencies, in general, are not considered assets under Vietnamese laws. Therefore, users should be aware of the risks of investing in Pi.
It highlighted some of the potential risks associated with the token, including scammers using it for illegal activities by creating mimic tokens for unassuming investors or even fake applications to collect user data and give fraudsters access to victims’ accounts.
Authorities have also warned that posting information about Pi and other digital assets could violate the law.
It said:
“It is not allowed to give, transmit, post false and unverified information on cyberspace related to virtual currencies, cryptocurrencies in general and Pi coins in particular, causing public confusion or causing cases of violating the law.”
The Department of Cybersecurity and Crime Prevention also called on those investing in Pi to carefully research all information before investing so as “to avoid the risk of property damage and encountering unfortunate events.”
Pi falls 17% in 24 hours
Pi token has seen a massive plunge in its value today, falling 17.6% to $1.73 in the last 24 hours. According to CoinGecko data, the token still has a 21% gain in the past seven days, mostly due to listing on exchanges such as OKX, Bitget, and MEXC.
However, it has also attracted criticism, with some stakeholders in the crypto community regarding it as a fraudulent project. They note its lack of listing by major exchanges and zero transparency as major reasons for this view.
Some users have also complained that they cannot claim the Pi tokens because the Pi Network team has not verified their Know Your Customer (KYC) process. The KYC process is compulsory for users to access their Pi, and many of the long-term users say they have not passed the stage yet.
In its response, the Pi Network team has extended the deadline for its mainnet migration to March 14, 2025, noting that this will give people more time to verify their balances and migrate to the mainnet.
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Source: https://www.cryptopolitan.com/vietnam-police-warning-pi-network/