What is Pi Network? Is Pi Network legal in Vietnam?

What is Pi Network? Is Pi Network legal in Vietnam? (Image from the internet)

What is Pi Network?

Pi Network is one of the cryptocurrency mining applications introduced since 2019. Its goal is to create an easy-to-use cryptocurrency network that can be mined on mobile devices without consuming much energy like traditional cryptocurrencies such as Bitcoin.

Pi Network allows users to mine coins directly on their smartphones without requiring expensive hardware or consuming a lot of energy. The mining speed depends on the number of participants in your network.

Unlike Bitcoin, Pi Network uses the Stellar Consensus Protocol (SCP) algorithm, which helps save energy.

With these outstanding features, Pi Network has attracted millions of users worldwide, thanks to its model of inviting others to join to increase mining speed.

The above information is for reference purposes

Is Pi Network legal in Vietnam?

As of now, not only Pi network but also all other cryptocurrencies in Vietnam have not been legalized according to legal regulations.

Law on the State Bank of Vietnam 2010 and related guidance documents have not yet provided any provisions governing cryptocurrencies or virtual assets in Vietnam.

The current regulation in Clause 10, Article 3 of Decree 52/2024/ND-CP only recognizes the following non-cash payment instruments:

- Paper money, metal coins issued by the State Bank;

- Checks, payment orders, payment mandates, collection orders, collection mandates, bank cards (including: debit cards, credit cards, prepaid cards), e-wallets, and other payment instruments as prescribed by the State Bank.

Therefore, Pi network has not been legalized in Vietnam. Citizens should be cautious of related risks when using Pi network, as resolving issues in case of risks is very difficult due to the lack of regulatory adjustments.

Moreover, transactions involving Pi network and other cryptocurrencies are prohibited and subject to penalties.

What are current administrative and criminal penalties related to cryptocurrency in Vietnam?

As they have not been legalized, those who use Pi network or other cryptocurrencies for transactions may be penalized as follows:

* Administrative sanctions

A fine from 50,000,000 VND to 100,000,000 VND is imposed on individuals for issuing, providing, or using illegal payment instruments that do not reach the level of criminal responsibility.

For organizations violating the above behavior, the penalty is double, i.e., from 100,000,000 VND to 200,000,000 VND.

(Clause 3 Article 3 and Clause 6 Article 26 of Decree 88/2019/ND-CP (amended by Decree 143/2021/ND-CP))

* Criminal sanctions

Individuals who perform one of the acts of issuing, providing, or using illegal payment instruments, causing property damage to others from 100,000,000 VND to under 300,000,000 VND, may face a fine from 50,000,000 VND to 300,000,000 VND or imprisonment from 06 months to 03 years.

What are regulations on electronic wallets in Vietnam?

- Electronic wallets, prepaid cards are means of storing electronic money.

- Banks, branches of foreign banks are allowed to issue, provide electronic wallets, prepaid cards. The provision, issuance, and use of electronic wallets, prepaid cards are carried out according to the regulations of the State Bank.

- A payment intermediary service provider providing electronic wallet services must ensure that the total balance on all accounts securing payment for electronic wallet services opened at banks, foreign bank branches is not less than the total balance of all electronic wallets issued to customers; the service is only allowed for electronic wallets linked to the customer's payment account, debit card.

(Article 6 of Decree 52/2024/ND-CP)

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