China’s financial regulators, including the National Internet Finance Association of China and the China Banking Association, have labeled Pi Coin a “valueless virtual asset.” Their joint statement warns that Pi Coin, along with stablecoins and so-called “air coins,” is being used for illegal fundraising, fraud, and capital outflows.
Moreover, the statements argues that Many Pi Coin users are inexperienced and vulnerable to schemes promising gains under the guise of mining or token sales. In their December 5 notice, the agencies stated on December 8:
They use the guise of stablecoins, valueless coins (like Pi Coin), real‑world asset tokens, and ‘mining’ to engage in illegal fundraising, pyramid schemes and transfer of profits from these illegal activities through virtual assets.
Despite a recent 16% price jump, as highlighted in our coverage, following the Pi Network’s alignment with ISO 20022 global financial standards alongside Ripple and Stellar, official disapproval could limit Pi Coin’s use in China.
The joint notice, according to a South China Morning post, also emphasizes the token’s centralized, closed-network structure and warned it is prone to misuse for illegal fundraising and pyramid-style schemes.
As already mentioned above, while the warning targets Pi Coin in specific, it also reflects the China’s broader concern over speculative cryptocurrencies, including Bitcoin. This is why the PBOC and other regulators continue to stress that virtual currencies are not legal tender, and any trading or related business is illegal.
For example, we reported that China remains one of the top three global Bitcoin mining hubs despite the national ban imposed in 2021. China still contributes about 14% of global Bitcoin mining despite regulatory restrictions, while authorities continue to warn against stablecoins and real-world-asset tokens.
As of press time, Bitcoin trades around $92,424.48, with an increase of 2.66% in 24 hours but down 0.44% over the past week. See BTC price chart below.
