Vietnam police warn traders about Pi Network

The police in Vietnam have warned the public about Pi Network, issuing an advisory that classifies its use for payments as illegal. In a recent post on Facebook, the authorities noticed the rapid rise in its everyday usage for transactions, noting that it could attract sanctions and criminal prosecution.

According to the police, virtual currencies cannot be used as a means of payment as it breaches the existing laws of the country. The authorities noted that any organization accepting cryptocurrency as a means of payment could be liable to face sanctions under Clause 6 Article 26 of Decree 88/2019/ND CEP.

The police added that the sanction could see the affected individuals pay fines of up to 100 Vietnamese dollars, with the entities prosecuted under the regulation of banking activities. The recent statement is in response to the wide usage of the token as a means of payment by individuals and firms. Vietnam has one of the highest crypto adoption rates globally, and Pi has gained momentum in the country since it was listed on several exchanges.

Vietnam police say Pi is not an asset

According to the authorities, Pi does not have the makeup of a real asset as its value is based solely on speculation. Also, Pi and other digital assets are not considered as assets under the law in the country, therefore users should be aware of the risks of investing in these tokens. The authorities noted that some of the risks associated with these assets include scams, rug pulls, and other vices that have ravaged the crypto industry.

The police also mentioned that posting information about Pi and other tokens could also violate the laws of the country. “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 statement said.

The Department of Cybersecurity and Crime Prevention has also urged investors in the token to ensure they get adequate information about the token before they put their funds in it “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 the last 24 hours, dropping 17.6% to $1.73. According to data from CoinGecko, the token still boasts a 21% gain over the last seven days, with the gain attributed to its listing on exchanges like OKX, Bitget, and MEXC. However, the project has seen criticism in the industry, with most people saying it is a fraudulent project. Most of them attribute the lack of listing on major exchanges and transparency as major factors.

Some of the users on the platform have also called the project out due to their inability to pass the Know Your Customer (KYC) stage, a stage compulsory for users to migrate their mined tokens to the mainnet. In response, the Pi Core team has extended the deadline for migration to March 14 as it gives people enough time to move their tokens to the mainnet or they are lost forever.

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