New reports from mainland China show that regulators are increasing scrutiny of virtual currencies, with specific mentions of stablecoins, real-world asset (RWA) tokens, and Pi Coin.
Officials say the concern is not the assets themselves, but the way some individuals are using them for illegal fundraising, financial fraud and capital outflows. These activities fall under criminal violations in China and often target inexperienced users.
The notice refers to “π coin,” which may mean the Pi Network token or imitation tokens created by scammers using the Pi name.
The network remains closed, highly centralized and has limited real-world use. Because of this, regulators describe it as an “air coin,” a term used in China for tokens with unclear value and weak fundamentals.
Slow development and a lack of transparency have led to rising doubts among users, especially in regions where participation is high.
The authorities said, “These virtual assets have no substantial technological innovation and lack business value or use cases and under the name of mining they carry out illegal fundraising, pyramid schemes and other illegal activities, and they are transferring proceeds from illegal activities through virtual assets.”
One crypto commentator pointed out that Pi Network has attracted millions of users across mainland China, far more than traditional cryptocurrencies like BTC or ETH, which remain niche due to China’s strict rules and high entry barriers.
Because Pi is widely circulated among everyday users, regulators say it has become a common tool for scammers, who often promise future profits, pre-market sales or fake listings.
Many users involved in Pi-related schemes have little knowledge of digital assets, making them more vulnerable to fraud. This is why Pi Coin was singled out in the warning while larger assets like Bitcoin were not.
The recent warning is part of broader efforts to maintain financial stability. China has taken a strict stance against speculative crypto activity while allowing limited experimentation in areas such as blockchain technology.
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
With regulation tightening across the digital-asset sector, SolStaking’s effortless staking model and Lloyd’s of London–insured…
Ethereum and Tron have witnessed a minor pullback. The correction comes as bearish pressure returns…
The US Office of the Comptroller of the Currency has issued new guidance that could…
Tomorrow’s Federal Open Market Committee (FOMC) decision has emerged as a critical turning point for…
Cardano’s price has drawn fresh attention after staging a strong rebound from recent lows below…
Ozak AI is becoming one of the most influential early-stage tokens in the crypto market,…
