Hanoi police reported on March 2nd that they’ve noticed a significant jump in interest around Pi. They believe this is fueled by heavy promotion on social media and recent listings on exchanges since its mainnet launch.

Vietnam Sounds the Alarm: Pi Network’s Risks and its Speculative Nature

Officials are concerned that Pi Network is marketing its ‘mining’ app by creating unrealistic expectations, suggesting prices will just keep going up. This tactic, they warn, could be drawing in people who don’t fully grasp the dangers.

Adding to the concern, authorities want to remind everyone that cryptocurrencies, including Pi, aren’t considered legal assets in Vietnam. This means if things go wrong – disputes or financial losses related to Pi – you might not have legal protection.

Furthermore, law enforcement is waving another warning flag: Pi Network could be a breeding ground for fraud. They point to the dangers of scams involving fake Pi tokens, designed to steal your personal information and launder money.

“Pi doesn’t really do anything; it’s value is just made up, and that’s causing a lot of confusion about what it’s actually worth,” authorities explain. “Unfortunately, some bad actors might try to take advantage of this – like by making fake Pi coins to trick people and steal their money, or creating fake Pi apps to steal user data or break into accounts to steal assets from Pi transactions,” they stated.

And there’s more: Digital assets like Pi aren’t legal payment methods in Vietnam. If anyone, individual or business, tries to use them for payments, they could face fines or even legal trouble.

“Using cryptocurrencies in general, and specifically Pi, for payments? Don’t,” the police warn. “Individuals or organizations doing so risk penalties under Clause 6, Article 26 of Decree 88/2019/ND-CP (fines can range from 50 to 100 million VND), and could even face criminal charges under Article 206 of the Penal Code,” the police wrote.

So, with all this in mind, the government is strongly advising everyone: double-check information before you invest, and don’t spread unverified rumors on social media. Sharing false or misleading info can have legal repercussions, they caution.

“Please, do not share or post any unconfirmed false information about cryptocurrencies in general, and Pi especially, that could alarm people or lead to breaking the law,” they added.

This firm stance from regulators is all about protecting investors and keeping the market safe. It’s worth noting that Vietnamese officials have been keeping a close eye on Pi Network for quite some time now.

Almost two years ago, they actually investigated the project, worried about its structure which resembled multi-level marketing (MLM), and how it could potentially hurt investors.

Meanwhile, this official warning already seems to be impacting the market. Data from CoinMarketCap indicates that the price of the Pi token has dropped by 18% in the last day.

Just a week after launching, Pi hit a high of $2.98, a 20% jump in a week. But now, it’s trading around $1.75 – a fall of more than 40% from that peak.

Now, investors are facing an uncertain outlook. It’s more important than ever to be extra careful if you’re dealing with this token.