Recent reports indicate that Chinese regulators are stepping up their oversight of cryptocurrencies, particularly focusing on stablecoins, tokens backed by real-world assets, and the Pi Coin cryptocurrency.
Authorities aren’t worried about the assets themselves, but rather how some people are using them to commit crimes like illegal fundraising, financial fraud, and moving money out of the country. These actions are against the law in China and frequently prey on those who aren’t familiar with these types of systems.
Why Pi Coin Was Named in the Warning
In my research, I’ve come across references to something called “π coin.” It’s important to note that this could refer to the actual Pi Network cryptocurrency, or it could be a fake token created by scammers who are trying to exploit the Pi Network’s name to trick people.
The network is still isolated, controlled by a few entities, and doesn’t have much practical application. As a result, authorities are calling it an “air coin” – a Chinese term for tokens that lack clear value and a solid foundation.
Users are starting to have concerns because development is taking a long time and there isn’t enough clear communication, particularly in areas where many people are actively involved.
Officials have stated that these digital assets aren’t based on genuine technological advancements and don’t offer real-world value or practical applications. Instead, they’re being used for unlawful fundraising, fraudulent pyramid schemes, and other criminal activities, with the profits being moved around using these digital assets.
Large User Base in China Has Raised Additional Concerns
As an analyst, I’ve been following the growth of Pi Network, and it’s remarkable. They’ve gained a massive user base in mainland China – significantly larger than what we typically see with established cryptocurrencies like Bitcoin or Ethereum. This is likely due to the restrictions and complexities that make it harder for those traditional coins to gain traction in China.
Pi is popular with many people, but regulators warn that scammers are now frequently using it to trick users with false promises of future earnings, early access to sales, or nonexistent products.
Because many people participating in Pi schemes aren’t familiar with cryptocurrencies, they’re easily targeted by scams. This explains why warnings focused on Pi Coin instead of more established currencies like Bitcoin.
This latest caution is one piece of a larger plan to keep the financial system strong. China is cracking down on risky cryptocurrency trading, but remains open to exploring blockchain technology in a controlled way.
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2025-12-10 07:39