The Department of Cybersecurity and High-Tech Crime Prevention in Vietnam has officially announced an investigation into the activities of Pi Network, a cryptocurrency project. This move comes as authorities express concerns over the increasingly complex and unregulated operations of cryptocurrency models, particularly those utilizing multi-level marketing schemes.
Department Head Le Xuan Minh highlighted the top five key reasons for launching the investigation during a meeting held in Hanoi.
1. Firstly, Minh emphasized the extraordinary income potential associated with online cryptocurrency ventures, stating that there is no other business activity capable of generating such high levels of profit in the digital realm.
2. However, the second reason behind the investigation lies in the authorities’ concerns about individuals being coerced into joining cryptocurrency schemes resembling multi-level marketing models. Such schemes often involve recruitment practices that raise red flags and can potentially exploit participants.
3. The third reason revolves around the investigation’s focus on Pi Network’s operations, particularly in relation to its market valuation. With a GCV of $314,159, authorities find the amount too high to be justified for the purchase of a single Pi Coin. This valuation raises suspicions about the underlying mechanics and potential risks associated with the cryptocurrency project.
4. The fourth reason pertains to the authorities’ commitment to ensuring the safety and protection of investors and the general public. As cryptocurrency activities continue to grow in complexity, it becomes crucial to closely monitor and regulate their operations to prevent fraud, scams, and other forms of financial misconduct.
5. Finally, the fifth reason for the investigation is to address the challenges posed by the lack of proper regulations and oversight in the cryptocurrency sector. With the rise of digital currencies, there is an urgent need to establish a regulatory framework to safeguard the interests of investors and maintain the stability of the financial system.
The investigation launched by Vietnamese authorities reflects a broader trend of governments worldwide grappling with the regulation and supervision of cryptocurrencies. As the popularity of digital currencies grows, it becomes essential for authorities to strike a balance between fostering innovation and ensuring the protection of investors and the general public.
Pi Network, which has gained significant attention and a large user base in Vietnam, will now be subject to thorough scrutiny as the investigation unfolds. The Department of Cybersecurity and High-Tech Crime Prevention aims to address the concerns surrounding Pi Network’s activities and take appropriate measures to safeguard the interests of Vietnamese citizens.
As the investigation progresses, it is crucial for individuals involved with Pi Network or any other cryptocurrency project in Vietnam to stay informed and comply with any regulatory requirements or guidelines put forth by the authorities. Continue Reading
