The Pi cryptocurrency gained much interest in Vietnam, but local officials warned investors to exercise caution because it is quite risky.
According to the Department of Cybersecurity and High-Tech Crime Prevention, regulatory authorities in Vietnam have begun looking into the Pi cryptocurrency.
Department chief Le Xuan Minh stated last week at a conference in Hanoi that recent cryptocurrency models like Pi operations have been extremely complex and poorly handled.
This is the only type of business that can provide such high levels of internet revenue. According to Minh, there are signs that people are being coerced into joining multi-level marketing schemes by cryptocurrency advocates.
The police are specifically investigating actions associated with the Pi cryptocurrency in a number of locations. Authorities have warned people against engaging in cryptocurrency schemes that involve multi-level marketing or promise exceptionally high earnings.
According to a local newspaper, VN Express, Minh said that these activities involve many dangers and urged investors to proceed cautiously. The regional newspaper also noted that the Pi Crypto Network needed more openness for a blockchain initiative.
He also warned that those who advocate cryptocurrencies have lured individuals into “business models that resemble multi-level marketing.”
About Pi Network
Starting in 2019, the Pi Network will become well-known in Vietnam by 2021. This is because users may generate PI tokens using their smartphones rather than needing to invest in costly mining machinery.
The PI network, however, doesn’t have any other use save the exchange of PI tokens. Several experts say this coin lacks transparency and could be used for identity theft or data collection.
According to an analyst in HCMC, many people continue to trust Pi because they believe there is no risk in joining. Users, however, run the danger of having their private data taken.
Understanding that cryptocurrencies are not recognized as legal tender in Vietnam is crucial. A fine of up to VND100 million ($4,240) may be imposed for using, dealing, or issuing them as payment.
