What Are the Key Regulatory Risks Facing Pi Network in 2025?

SEC investigates Pi Network's KYC process for regulatory compliance

The Securities and Exchange Commission's investigation into Pi Network's Know Your Customer (KYC) process represents a significant regulatory milestone for the platform. Pi Network filed a Form D notice with the SEC, formally disclosing securities offerings and demonstrating commitment to regulatory compliance. The SEC subsequently dropped its lawsuit against Pi Network, marking a turning point in the project's legal standing.

Pi Network's KYC implementation serves multiple critical functions within the regulatory framework. The platform enforces a one-account-per-person policy, preventing fraudulent activities and identity theft while ensuring compliance with global financial regulations. According to recent data, Pi Network faced a January 31, 2025 deadline for KYC completion, with millions of users requiring full verification before mainnet migration.

The investigation underscored the platform's emphasis on regulatory adherence, particularly regarding potential Coinbase listing criteria, which demand stringent identity verification standards. Pi Network's development team prioritized user identity verification to deter illicit activities and align with international compliance standards. The platform's response to regulatory scrutiny demonstrates its positioning within legitimate crypto markets, where transparency and user authentication form essential foundations for institutional adoption and mainstream integration.

Chinese authorities warn of potential illegal fundraising risks

China's regulatory authorities have intensified warnings regarding illegal fundraising risks associated with virtual currencies, particularly targeting projects like Pi Network. The People's Bank of China (PBOC) and coordinated regulatory agencies have explicitly stated that business activities related to virtual currencies constitute illegal financial activities within the country's jurisdiction.

According to regulatory statements, participants in such schemes face substantial legal consequences. Chinese users engaging with Pi Network may encounter administrative penalties including significant fines or criminal prosecution charges related to illegal fundraising operations. The regulatory framework provides no legal protections for investors participating in these activities.

The core governance team of Pi Network, registered in the United States, has already excluded users from the US and EU regions due to mounting regulatory pressure. However, Chinese participants remain vulnerable to legal action. Additional risks emerge when investors purchase Pi through non-compliant channels such as informal over-the-counter transactions or IOU arrangements, potentially leading to asset devaluation and costly legal disputes.

Regulatory authorities emphasize that virtual currencies fail to meet customer identification requirements and anti-money laundering standards, positioning them as vehicles for money laundering, fundraising fraud, and illegal cross-border fund transfers. This strict regulatory stance reflects China's comprehensive approach to eliminating cryptocurrency-related speculative activities and protecting financial system integrity.

Pi Network collects extensive personal data from 60+ million users raising privacy concerns

Pi Network's data collection practices present significant privacy concerns that warrant careful examination. The platform requires mandatory Know Your Customer (KYC) verification for users to access mined tokens, demanding submission of video selfies and government-issued identification documents. This represents an unprecedented level of personal information harvesting within the cryptocurrency space.

The discrepancy between user claims and actual verified accounts reveals troubling inconsistencies. While Pi Network reported over 60 million users, only 18 million users completed KYC verification as of December 2024, representing just 30% of claimed users. Furthermore, the number of active wallets and mainnet-migrated users remains substantially lower than the platform's promotional figures.

Security analysts have documented systematic harvesting of unprecedented personal information from network participants. The centralized storage of sensitive user data combined with mandatory verification requirements creates concentrated risk exposure. These practices fundamentally contradict decentralization principles that underpin legitimate blockchain projects, raising serious questions about user protection and data sovereignty within the Pi Network ecosystem.

MiCA white paper released in October 2025 to ensure transparency for EU market access

Pi Network took a significant regulatory milestone in October 2025 by publishing its MiCA-compliant white paper, a comprehensive document designed to secure European market access and demonstrate full transparency. This strategic filing, prepared by PiBit Ltd and submitted under EU Regulation 2023/1114, marks Pi Network's formal commitment to the Markets in Crypto-Assets Regulation framework.

The white paper encompasses critical regulatory components including detailed risk assessments across offer-related, issuer-related, crypto-asset-related, project implementation, and technology dimensions. The document outlines Pi Network's low-energy blockchain architecture, a capped supply of 100 billion tokens, and non-custodial wallet infrastructure that ensures users maintain exclusive control over their private keys.

This regulatory transparency initiative directly facilitated market access expansion. Following the white paper's release, Pi coin experienced a notable 10% price increase, reflecting market confidence in the project's regulatory positioning. The filing specifically details trading commencement timelines, self-custody protocols, and plans for pan-European exchange listings through licensed platforms.

The MiCA compliance achievement represents a watershed moment for Pi Network's institutional legitimacy. By proactively aligning with EU regulatory standards, the project positioned itself for potential listings on regulated European exchanges, addressing the previous barrier that prevented most European countries from trading PI tokens due to regulatory uncertainty.

FAQ

Is pi coin worth anything yet?

As of 2025, Pi coin has gained value. It's traded on several exchanges with a market cap in millions, showing potential for growth.

How many pi is $100?

Based on current market rates, $100 is equivalent to approximately 2,018.89 Pi coins.

How much is 1 pi coin worth currently?

As of December 2025, 1 pi coin is worth $0.231298. The price has seen a slight decrease of 1.74% in the past 24 hours.

What is the future of pi coin?

PI coin's future looks promising but uncertain. By 2025, it may trade around $0.20, with potential for growth. Its success depends on market adoption and technological developments in the Web3 space.