Since February 20, Pi Coin from the Pi Network project has been listed on several international cryptocurrency exchanges, with its price fluctuating between $0.6 and $2.0 before stabilizing at $1.6 per coin.

As trading activity increased, concerns arose over whether using Pi Coin for real-world transactions in Vietnam is legal.

According to financial experts, buying and selling Pi Coin on cryptocurrency exchanges is not explicitly banned under Vietnamese law. However, using Pi Coin as a payment method for goods and services is illegal.

A government decree on cashless transactions (Decree 52/2024/ND-CP), issued on May 15, 2024, clearly defines legal and illegal payment methods.

Clause 10, Article 3 of the decree states that legal cashless payment methods include checks, credit cards, electronic wallets, and bank-issued instruments.

Clause 11, Article 3 explicitly states that any payment method not listed in Clause 10 is considered illegal.

Clause 6, Article 8 prohibits the issuance, provision, and use of unauthorized payment methods, reinforcing the illegality of using Pi Coin for transactions.

This means while owning Pi Coin is not regulated, using it to pay for products or services violates Vietnamese law.

Pi Coin transactions in Vietnam: A risky practice

Prior to Pi Coin’s listing on exchanges, some businesses and individuals in Vietnam accepted Pi for purchases, including motorbikes, beverages, and even real estate.

These transactions, labeled as "consensus trading" within the Pi Network community, now fall under illegal payment activities per Vietnamese regulations.

The State Bank of Vietnam (SBV) has previously warned against using cryptocurrencies for payments, emphasizing that only the Vietnamese dong (VND) is recognized as legal tender.

Dr. Dang Minh Tuan, Chairman of the Vietnam Blockchain Alliance, has raised concerns over Pi Network’s credibility and transparency.

Lack of transparency: No clear information on the development team or the project’s roadmap.

Centralization concerns: The Pi Core Team controls a significant portion of the coin supply, raising doubts about decentralization.

Absence of smart contracts: Unlike other blockchain-based projects, Pi Network has not disclosed its source code, making it impossible for the community to verify transactions or governance mechanisms.

While the listing of Pi Coin on exchanges has sparked renewed interest, investors should exercise caution. Vietnamese authorities have yet to introduce regulations on owning or trading cryptocurrencies, but using Pi Coin for transactions remains illegal.

Financial experts advise investors to comply with existing regulations and remain wary of potential legal risks associated with cryptocurrency transactions in Vietnam.