Pi Network Decreases as the Vietnamese Government Issues Legal Warning

On March 2, the Hanoi city police noticed an increase in attention around this announcement, which they attributed to the widespread advertising activities on social media and recent listings on exchanges after the mainnet launch. Vietnam Warns of Risks of Pi Network and Speculative Nature Officials warn that Pi Network markets its mining app with unrealistic expectations of price continuing to rise. They say this attracts users who may not fully understand the risks. The authorities also clarify that cryptocurrencies, including PI, do not have legal status as assets in Vietnam. Therefore, any disputes or financial losses related to Pi transactions may not be legally protected. Furthermore, the law enforcement agency warns that Pi Network may be misused for fraudulent activities. They emphasize the risk of scams related to fake tokens designed to steal user data and launder money. “Pi lacks practical applications; its value is self-assigned, leading many to misunderstand its true value. Some parties may exploit Pi for illegal activities—e.g., by creating counterfeit Pi cryptocurrency to fund fraudulent property seizure or by developing fake Pi apps to illegally gather user data or gain unauthorized access to defraud property or cryptocurrency in Pi transactions,” authorities declared.

In addition, digital assets are not recognized as a legal method of payment in the country, and any entity that uses them to transact may be subject to penalties or legal action. “Any individual or organization using cryptocurrency in general and Pi in particular to conduct payment activities will be fined under Clause 6 Article 26 of Decree 88/2019/ND-CP ( with a fine from 50,000,000 VND to 100,000,000 VND ) or may be subject to criminal liability under Article 206 of the Penal Code,” the police wrote. In light of this, the government calls on citizens to verify information before investing and to avoid spreading unverified information on social media. According to officials, sharing inaccurate information or causing misunderstandings can lead to legal consequences. They also added, “Circulating, transmitting, or posting unverified misleading information about cryptocurrencies in general and Pi in particular could cause confusion to the public or lead to legal violations”. This strict management stance aims to protect investors and maintain market integrity. Notably, Vietnamese officials have carefully examined Pi Network for several years. Nearly two years ago, they investigated the project, expressing concerns about its MLM-like structure and potential harm to investors. Meanwhile, the regulatory warning has had an immediate impact on the market. According to CoinMarketCap data, the price of Pi token has decreased by 18% in the past 24 hours.

Just within a week of its launch, PI hit an all-time high of $2.98, marking a 20% increase over the past week. Currently, it is trading at around $1.75, down more than 40% from the peak. Investors are currently facing instability and need to be more cautious when trading tokens.