The Hanoi Police Department of Vietnam issued a statement on Facebook on March 2, emphasizing that virtual currencies, especially PI coins, are not considered assets in Vietnam and related trading activities are not protected by law. In addition, virtual currencies such as PI coins are not allowed to be used as payment tools, and violators may face fines or even criminal prosecution.

Pi Network, which features "mobile phone mining", officially opened its mainnet on February 20 after more than six years of waiting, and was listed on many well-known exchanges such as OKX, MEXC, GATE, BITGET, and ONUS.

The Vietnamese police said that they have recently noticed a surge in discussions about Pi Network on social media (Facebook, Instagram, TikTok, etc.). The Pi mining community is in high spirits, and many people expect the price of PI coins to rise further. At the same time, it has also attracted many new investors who are not familiar with PI coins.

Although PI coin has triggered an investment boom after its listing, the Hanoi Police Department warned that under Vietnamese law, virtual currencies (especially PI coins) are not considered assets, related transactions are extremely risky, and it is difficult to obtain legal protection when disputes arise. Specifically:

• No asset attributes

According to Vietnamese law, virtual currencies (especially PI coins) do not fall into the category of assets. Therefore, transactions related to these virtual currencies involve great risks, and once disputes or conflicts occur, it will be difficult to obtain legal protection.

• Not to be used as a means of payment

The State Bank of Vietnam stipulates that virtual currencies are not legal means of payment.

 Any individual or organization that uses PI coins for payment will be fined between VND50 million and VND100 million (approximately US$2,000 to US$4,000) in accordance with the relevant provisions of Decree No. 88/2019/ND-CP and Decree No. 143/2021/ND-CP. In serious cases, the offender may even be held criminally liable under the Criminal Law.

• Beware of fake project scams

Due to the high popularity of PI coins, there are more and more related scam projects. The police listed several common virtual currency fraud methods, including counterfeiting PI coin plans to raise funds, impersonating Pi Network APP to illegally obtain user information, and stealing PI coins or other encrypted assets through fraudulent means.

Vietnamese police call on people not to publish, disseminate or spread false or unverified information about virtual currency (especially PI coin) on the Internet, so as not to mislead the public or even violate the law.

Investor response strategies

Facing the market volatility and legal risks of PI coins, investors should remain calm and analyze market dynamics rationally. The following strategies are recommended:

• Risk management: clarify your own risk tolerance, set stop loss points and stop profit points, and avoid blindly following the trend.

• Information verification: Before participating in PI coin investment, be sure to verify all relevant information to avoid financial losses due to false information.

• Diversify your investments: Avoid concentrating all your funds on a single cryptocurrency, invest in a variety of cryptocurrencies and non-crypto assets, and reduce your risk.

• Pay attention to regulatory developments: Pay close attention to changes in regulatory policies in Vietnam and other countries, and adjust investment strategies in a timely manner.