Vietnamese Authorities Investigate Pi Cryptocurrency

Pi Coin. (Photo; Doc. Pimiss)

JAKARTA - The Department of Cybersecurity and the Prevention of High-Technological Crimes announced that regulatory authorities in Vietnam have started an investigation into the cryptocurrency Pi.

In a meeting in Hanoi last week, the department chief, Le Xuan Minh, stated that cryptocurrency model operations such as Pi were very complex and had not been properly managed. He expressed concern over this tiered marketing scheme similar to this cryptocurrency business model that allegedly forced people to join.

According to local publication VN Express, police in various regions are investigating cryptocurrency-related activities. Authorities have warned individuals about investment risks in cryptocurrency schemes that offer very high profits or use tiered marketing structures.

Minh emphasized the importance of a cautious approach in investing and reminded the public that such activities carry risks. Local publications also noted a lack of transparency level in the Pi Crypto Network blockchain project. Cryptocurrency promoters have also been accused of persuading people to join a "business model that resembles tiered marketing."

Pi Network itself started operating in 2019 and became popular in Vietnam in 2021. Users can obtain PI tokens through their phones, avoiding the high cost of mining equipment. However, some experts are concerned about the lack of transparency in this project and potential fraud or personal data collection.

Experts at HCMC revealed that many people still believe in Pi because they consider it harmless to join, even though users are at risk of experiencing personal information theft. It should be noted that cryptocurrencies are not officially recognized as a means of payment in Vietnam. Using, trading, or issuing them as payments can result in fines up to VND100 million or about 4,240 US dollars (equivalent to Rp63.9 million).