Although Vietnamese law prohibits the use of cryptocurrencies as a means of payment, many individuals in Vietnam still agree to make payments using the Pi Network in various buying and selling transactions.

This may lead to legal risks, given the government's growing interest in the cryptocurrency sector.

Also Read: Pi Network Price in Vietnam Surges After Binance Considers Listing

Pi Network is not a legal means of payment in Vietnam

In recent years, there have been small waves in Vietnam where people accept payments in Pi Network. From small transactions like buying a cup of coffee or a bowl of pho worth less than 100,000 VND, to larger transactions like buying an iPhone worth tens of millions of dong, this situation has occurred under the name of "Pi Network consensus".

When the media reported on this extensively in 2021-2022, the use of Pi for payments subsided. However, the Pi mining community has quietly maintained and developed in Vietnam in 2023-2024, although not as loudly as before. Now, along with the growing interest in Pi Network's mainnet launch, Pi has become a cryptocurrency that is being actively bought and sold among individuals. According to recent reports from BeInCrypto, PI has a price of over 100,000 VND.

In Clause 10 of Article 3 of Decree 52/2024/NĐ-CP, there are regulations on non-cash payments as follows:

"Non-cash payment instruments (hereinafter referred to as payment instruments) are instruments provided by payment service providers, finance companies authorized to issue credit cards, payment intermediary service providers, and e-wallet issuers, and used by customers to make payment transactions, including: checks, payment orders, remittances, collections, bank cards (including debit cards, credit cards, prepaid cards), e-wallets, and other payment instruments as prescribed by the State Bank of Vietnam." - Decree 52/2024/NĐ-CP.

Therefore, cryptocurrencies or virtual currencies are not considered legal non-cash payment instruments, so Pi Network is also not considered a legal means of payment in Vietnam.

Individuals can face fines of up to 200 million VND for paying with Pi Network

Due to the above regulations, any individual or organization using the Pi coin for payments may face penalties depending on the severity of the violation. If it does not reach the level of criminal liability, the fine can be up to 200 million VND.

According to Clause 6 of Article 26 of Decree 88/2019/NĐ-CP, the regulation is as follows:

"Violation of regulations on payment activities...A fine of from 50,000,000 VND to 100,000,000 VND shall be imposed for one of the following violations: Issuing, providing, or using illegal payment instruments that do not yet constitute criminal liability." - Clause 6, Article 26, Decree 88/2019/NĐ-CP.

The maximum fine of 100 million VND is for individuals. However, Clause 3 of Article 3 of Decree 88/2019/NĐ-CP stipulates that if the same violation is committed by an organization, the fine will be doubled.

"The fine for an organization committing the same administrative violation shall be twice the fine for an individual." - Clause 3, Article 3, Decree 88/2019/NĐ-CP.

Therefore, if any organization uses Pi Network as a means of payment in Vietnam, they may be fined up to 200 million VND.

According to Article 206 of the 2015 Penal Code, if the issuance, provision, or use of illegal payment instruments causes property damage to others from 100,000,000 VND to less than 300,000,000 VND, the offender may be fined from 50,000,000 VND to 300,000,000 VND or imprisoned from 6 months to 3 years.

Also Read: Many Vietnamese Crypto Investors "Caught in Money Laundering" When Trading P2P

Subscribe to the BeInCrypto Newsletter to stay up-to-date with the latest analysis, news, and information on the financial market in general and cryptocurrencies in particular.