Vietnamese authorities have issued a warning regarding the risks associated with the Pi Network, emphasizing that the token lacks practical value and is highly speculative.

On March 2, the Hanoi City police raised concerns over the increasing interest in the token, attributing it to aggressive social media promotions and recent exchange listings after its mainnet launch.

Vietnam's Alert on Pi Network Risks and Speculative Nature

The officials cautioned that Pi Network promotes its mining application with unrealistic promises of sustained price hikes, potentially attracting users unaware of the associated risks.

They further clarified that cryptocurrencies, including PI, do not hold legal asset status in Vietnam, meaning that any disputes or financial losses from Pi-related transactions may not be legally protected.

Additionally, the law enforcement agency pointed out the potential misuse of Pi Network for fraudulent schemes, warning about scams involving counterfeit tokens aimed at data theft and money laundering.

Furthermore, digital assets are not recognized as legal payment methods in the country, with penalties or legal action awaiting entities using them for transactions.

The government urges citizens to verify information before investing and refrain from spreading unverified details on social media, as sharing misleading information could lead to legal repercussions.

The regulatory measures aim to safeguard investors and uphold market integrity, with ongoing scrutiny of Pi Network by Vietnamese authorities over the years.

Following the regulatory warning, Pi token prices dropped by 18% in the last 24 hours, showing the immediate impact of the alert on the market.

Investors now face increased uncertainty and are advised to exercise caution when engaging with the token to mitigate risks.