Pi Network has been deemed "worthless" by seven major Chinese associations!

Seven major financial institutions—the National Internet Finance Association of China, the China Banking Association, the China Securities Association, the Asset Management Association of China, the China Futures Association, the China Association for Public Companies, and the China Payment & Clearing Association—have jointly issued a warning, explicitly classifying Pi Network’s Pi Coin as a “worthless virtual asset.” The statement noted that criminals are using Pi Coin, stablecoins, and “mining” as fronts for illegal fundraising and pyramid schemes, transferring illicit profits via virtual assets.

The Logic Behind the Collective Ban by Seven Associations

In their joint statement, the seven associations wrote: “Recently, the concept of virtual currencies has become very widespread, and some criminals are exploiting it to facilitate transactions and speculation. They use stablecoins, worthless tokens (such as Pi Coin), real-world asset tokens, and ‘mining’ as pretexts for illegal fundraising and pyramid schemes, transferring the profits of these illegal activities through virtual assets. This seriously infringes on public property security and disrupts normal economic and financial order.”

The naming of Pi Network was not accidental. The project’s pitch is that users can mine for free simply by tapping a button in its mobile app every day. Vietnam is among the countries with the most miners, and Chinese users also account for a significant proportion. This “zero-cost mining” lure has attracted many ordinary people who lack an understanding of blockchain technology. They tap the button daily to accumulate Pi Coin, not knowing whether these tokens have any real value.

The associations’ warning emphasized that virtual currencies are not issued by monetary authorities and do not have legal tender status; thus, they cannot circulate or be used as currency in China. The alert also urges the public to remain vigilant and to report any suspicious activities to the relevant authorities. Such a joint statement from seven major financial associations is exceedingly rare, highlighting regulators’ high level of alertness toward projects like Pi Network.

A Six-Year Blockchain Farce Still Unfinished

Pi Network took nearly six years to launch its mainnet, and only on February 20 of this year did it finally allow users to transfer Pi to exchanges for trading. However, the project is still seen as an incomplete blockchain initiative, lacking smart contract functionality and open-source transparency. To date, the development team has only rolled out limited updates, including a domain auction feature, the PiFest shopping event, and a few small-scale applications.

This sluggish development pace stands in stark contrast to its massive user base. Millions of users tap a button every day to “mine,” yet these Pi Coins cannot be traded on mainstream exchanges and lack real-world use cases. Even more concerning, the project team has never made the source code public, so outsiders cannot verify whether the claimed blockchain technology genuinely exists.

The Industry’s Collective Rebuke: The Truth

Pi Network has faced harsh criticism from several well-known figures in the cryptocurrency space. CEX CEO Ben Zhou said that Pi is “more dangerous than meme coins” and made it clear that his exchange would not list Pi—a stance which carries significant meaning, as refusing to list a token represents a complete rejection of its fundamentals.

Cyber Capital founder and noted crypto analyst Justin Bons outright called Pi Network a “scam” and warned users to stay away. Bons’ criticism is based on technical analysis: he points out that Pi Network lacks true decentralization, and the development team’s opaque handling of token allocation and technical architecture all point to a carefully constructed Ponzi scheme.

China has completely banned cryptocurrency trading since 2021. Last month, the People’s Bank of China reiterated its position, warning that speculative activity could make a comeback. The central bank also pledged to intensify its crackdown on illegal activities involving stablecoins, and in a November 28 statement made it clear: “Virtual currencies do not have the same legal status as legal tender, cannot be used in the market as legal currency, and commercial activities related to virtual currencies are ‘illegal financial activities’.”