The Vietnamese authorities have warned citizens about the Risks linked to the PI network, warning that their token lacks real utility and remains very speculative.
On March 2, the police in the city of Hanoi noted an increase in interest surrounding the token, which they attributed to aggressive promotions on social networks and recent exchange announcements after its main launch.
Vietnam’s problems Warning on PI network risks and speculative nature
Officials have warned that the PI network markets its mining application with unrealistic expectations of continuous price increases. According to them, this attracts users who may not fully understand the risks.
The authorities also said that cryptocurrencies, including IP, have no legal active status in Vietnam. Consequently, disputes or financial losses linked to transactions linked to the IP may not be protected by law.
In addition, the law enforcement agency warned that the PI network could be used for fraudulent activities. They highlighted the risk of scams involving false tokens designed to steal user data and whiten money.
“Pi Lack of practical applications; Its value is self-sufficient, which leads to misunderstanding its true value. Certain parts could exploit Pi for illegal activities-for example, by creating counterfeit cryptocurrencies to collect funds for poor appropriation of fraudulent assets, or by developing false Pi applications to illegally collect the user data or to obtain unauthorized access to the fraud of assets or cryptocurrencies in PI transactions, “said the authorities.
In addition, digital assets are not counted as legal payment methods in the country, and any entity that uses them for transactions could face penalties or legal action.
“Any person or organization who uses cryptocurrencies in general, and PI in particular, for payment activities, will be subject to penalties under clause 6, article 26 of decree 88/2019 / ND-CP (with fines ranging from 50,000,000 VND to 100,000,000 VND), or could face criminal proceedings under article 206 of the Police Code for”.
Given this, the government urges citizens to verify the information before investing and avoiding disseminating non -verified details on social networks. According to the authorities, the sharing of false or misleading information could lead to legal consequences.
“Do not circulate, do not send or do not publish false information not verified concerning cryptocurrencies in general – and PI in particular – which could encourage public alarm or cause legal violations,” they added.
This strict regulatory position aims to protect investors and maintain market integrity. In particular, Vietnamese officials have been examining the PI network for years.
Almost two years ago, they investigation The project, citing concerns about its marketing type structure (MLM) and its potential to harm investors.
Meanwhile, the regulatory warning had an immediate impact on the market. According to CoinmarketCap data, Pi tokens prices have dropped 18% in the last 24 hours.
Just in the week following its launch, PI had reached a summit of $ 2.98, marking a 20% increase in last week. Now it is negotiated at around $ 1.75, a drop of more than 40% of its peak.
Investors are now confronted with uncertainty and must be greater caution when they deal with the token.
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