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.
Why Pi Coin Was Named in the Warning
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.”
Large User Base in China Has Raised Additional Concerns
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.
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