Vietnam Warns of Pi Network's Speculative Risks and 18% Price Plunge Amid Regulatory Crackdown

Vietnam Issues Warning on Pi Network’s Risks and Speculative Nature

Vietnamese authorities have raised alarms about Pi Network, cautioning citizens against its lack of real-world utility and highly speculative nature. ?

Surge in Interest and Unrealistic Promotions
On March 2, Hanoi police highlighted a spike in public interest driven by aggressive social media campaigns and the token’s mainnet launch. Officials warned that Pi Network’s mining app markets unrealistic price expectations, luring users who may not fully grasp the risks involved.

No Legal Recognition for Crypto Transactions
Authorities clarified that cryptocurrencies, including Pi, hold no legal status in Vietnam. Transactions involving such assets remain unprotected by law, leaving users vulnerable to disputes or financial losses. ?

Fraud and Data Theft Risks
Law enforcement emphasized concerns about Pi Network being exploited for fraudulent activities. Fake tokens could be designed to steal user data or launder money. “Pi has no practical applicationsâ€"its self-assigned value misleads many,” stated officials, noting potential scams involving counterfeit apps or unauthorized asset access.

Strict Legal Penalties for Crypto Payments
Vietnam’s government reiterated that digital assets are not recognized as payment methods. Individuals or entities using Pi for transactions face fines up to 100 million VND (~$3,900) or criminal prosecution under Decree 88/2019. ⚖️

Public Advisory and Market Impact
Citizens are urged to verify information before investing and avoid spreading unverified claims. “Sharing false details about Pi or cryptocurrencies could trigger public alarm or legal violations,” officials added.

The regulatory crackdown has already impacted Pi’s market performance. Following the warning, Pi’s price plunged 18% in 24 hours, now trading near $1.75â€"a 40% drop from its all-time high of $2.98 last week. ?

This stance reinforces Vietnam’s years-long scrutiny of Pi Network, particularly its multi-level marketing (MLM) structure and potential investor harm. As uncertainty looms, users are advised to proceed with extreme caution. ?