• The Department of Cybersecurity and High-Tech Crime Prevention in Vietnam has initiated an investigation into the operations of the Pi cryptocurrency.
• Pi Network was launched in 2019 and does not require massive computational power to mine.
• Vietnamese citizens have become increasingly interested in the model due to its potential for high returns, despite the government’s warnings against investing in cryptocurrencies.
Investigation into Pi Cryptocurrency
The Department of Cybersecurity and High-Tech Crime Prevention in Vietnam has initiated an investigation into operations of the Pi cryptocurrency. This announcement has stirred up a significant amount of attention, given the growing popularity of this digital currency in the Southeast Asian nation. During a meeting held in Hanoi to discuss the matter, department head Le Xuan Minh expressed concerns over potential risks associated with unregulated cryptocurrency activities.
The Pi Network was launched in 2019 and unlike some other cryptocurrencies, it does not require massive computational power to mine . Instead, it uses an individual’s smartphone to validate transactions and secure the network, making it accessible to a broader audience. In 2021, Vietnamese citizens became increasingly interested due to its potential for high returns despite warnings from authorities against investing in cryptocurrencies.
Legal Status of Cryptocurrency
In 2018, the State Bank of Vietnam banned commercial banks and payment service providers from making transactions involving cryptocurrencies. Additionally, Vietnamese laws stipulate that issuing, trading or using cryptocurrencies for payment can result in a fine of up to VND 100 million (approximately US $4,300). This has made many wary about investing in these models without proper regulation or supervision by authorities.
As mentioned earlier by Le Xuan Minh during his statement at Hanoi meeting – investing in cryptocurrency models that offer abnormally high returns or those that employ multi-level marketing schemes could be risky as they are complex and unmanaged without proper regulation or supervision by authorities .
The initiation of an investigation into operations of the Pi cryptocurrency is indicative of how seriously authorities are taking regulations surrounding this sector. It also serves as a reminder that measures should be taken before investing large sums into such models without proper regulation or supervision by authorities..