China's financial regulators, including the National Internet Finance Association of China and the China Banking Association, have issued a formal warning against Pi Coin, labeling it a "valueless virtual asset." In a joint statement dated December 5 and published on December 8, the agencies explicitly stated that tokens like Pi Coin, alongside stablecoins and real-world asset tokens, are being used as a guise for illegal fundraising, fraud, pyramid schemes, and capital outflows.
The notice highlights that Pi Coin's centralized, closed-network structure and its appeal to a large base of inexperienced users make it particularly prone to exploitation. Regulators pointed out that the project's slow development and opaque progress have earned it the domestic nickname of an "air coin," a digital asset with little demonstrated underlying value. This reputation has made it a convenient vehicle for scam operators using tactics common in multi-level marketing.
While the warning specifically targets Pi Coin, it reflects broader regulatory concerns over speculative cryptocurrencies in China, including Bitcoin. The People's Bank of China (PBOC) and other authorities continue to stress that virtual currencies are not legal tender and that any trading or related business remains illegal. This stance persists despite China reportedly still contributing about 14% of global Bitcoin mining hash rate, years after a nationwide ban was imposed in 2021.
The warning comes shortly after Pi Coin's price saw a 16% jump, a move attributed to the Pi Network's announced alignment with the ISO 20022 global financial messaging standard—a move also made by projects like Ripple (XRP) and Stellar (XLM). However, the official disapproval is expected to limit Pi Coin's adoption and use within China.
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