Crypto Crackdown: Vietnam Moves Fast to Rein In Pi Network Chaos!
Vietnam is accelerating its efforts to regulate cryptocurrencies following the widespread adoption and mining of Pi Network tokens. The government, through various agencies, has issued a series of warnings and new policies to mitigate risks and protect citizens from potential fraud.
New Regulations for Cryptocurrencies
Currently, Vietnam does not officially recognize cryptocurrencies as legal tender. The existing regulations primarily focus on prepaid cards and digital wallets linked to fiat currency, leaving a regulatory gap that has driven many blockchain companies to establish their operations in crypto-friendly jurisdictions like Singapore or the United States while continuing activities in Vietnam.
To address this, General Secretary of the Communist Party, To Lam, has proposed a "sandbox" model—an experimental period to observe digital asset trading without fully integrating it into the legal financial system. The Ministry of Finance and the Ministry of Science and Technology have been given a deadline until June 2025 to finalize a comprehensive regulatory framework. This move aims to position Vietnam as a leading player in the global crypto industry while ensuring the security and legality of digital transactions.
Warnings Against Pi Network
Vietnamese law enforcement has issued strict warnings against the use of Pi Network tokens for transactions, declaring such activities illegal. Violators may face legal repercussions under Clause 6, Article 26 of Decree 88/2019/ND-CP, which has been amended to reflect recent developments in digital finance.
Despite its unclear legal status, Pi Coin has gained traction among individuals and businesses for everyday transactions. However, the government has clarified that Pi Coin is not recognized as a legitimate asset under Vietnamese law, and its value is purely speculative. The associated risks include fraud, unauthorized Pi-based transactions, fake tokens, and malicious applications designed to harvest user data.
Pi Network's Declining Value and Market Impact
The price of Pi tokens has plummeted by 17.6%, dropping to $1.73 within the last 24 hours (as of March 3, 2025). Although it has still recorded a 21% increase over the past week, many in the crypto community have labeled Pi Network as a scam due to its lack of transparency.
Many users have reported difficulties in claiming their Pi tokens due to delays in the Know Your Customer (KYC) verification process. In response, the Pi Network team has extended the mainnet migration deadline until March 14, 2025. This extension aims to provide all users with a fair opportunity to verify their balances and transition to the mainnet ecosystem.
The Future of Cryptocurrency Regulation in Vietnam
Vietnam is actively working to establish a well-defined legal framework for digital assets. The government’s proactive measures are expected to protect citizens from financial fraud while fostering innovation in the blockchain space. The coming months will be critical in shaping the country’s future stance on cryptocurrency and digital finance.
