China reiterates warning on illegal virtual asset activities… "Pi Coin is a valueless coin" directly targeted

China's major financial self-regulatory organizations reiterated their negative stance on virtual assets (cryptocurrencies).

On the 5th (Korean time), according to the China Futures Association, several financial institutions including the China Internet Finance Association, the China Banking Association, and the China Securities Association stated in a joint notice that "virtual assets and stablecoins (virtual assets whose value is linked to fiat currencies) are not recognized as legal tender, and related trading and brokerage services are all illegal."

In particular, these institutions cited Pi Coin (PI) as an example of a valueless coin. The notice 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," strongly denouncing them.

Currently in China, the issuance, trading, and exchange activities of virtual asset tokens are considered illegal, and providing services to Chinese users by overseas platforms is also defined as illegal.

The institutions emphasized, "Legal responsibility for such illegal activities will be strictly enforced." They also urged, "If suspicious related activities are discovered, report them immediately to the relevant regulatory authorities and to the police."