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**OKX Announces PI Coin to Adopt “Isolation Listing Model”**
Legitimacy Issues of PI Coin
Recently, one of the focal points in the cryptocurrency market has undoubtedly been the launch of the Pi Network mainnet and the upcoming listing on exchanges. Trading platforms, including OKX and Bitget, have successively announced that PI Coin trading will open on February 20, prompting rapid discussions in the market. However, OKX suddenly announced yesterday that it will adopt an “isolation listing model,” meaning users in certain countries and regions will be unable to deposit and trade. According to Chinese media outlet “Wu Says Blockchain,” users in China will be excluded from trading.
It is speculated that this sudden decision may be related to the legitimacy issues surrounding PI Coin in certain countries.
According to an analysis released by lawyer Liu Zhengyao from Hengheng (Shanghai) Law Firm on February 13, since its launch in 2018, PI Coin has been mined through a mobile app and features an invitation mechanism allowing participants to accelerate their mining speed by referring new users. However, this “referral-based” promotional model bears many similarities to the definition of pyramid schemes in Chinese criminal law.
Chinese law stipulates that if an organization requires participants to pay fees or develop downlines to obtain profits under the guise of business operations, and if the levels exceed three layers with more than 30 participants, it may constitute a pyramid scheme crime. Lawyer Liu Zhengyao pointed out that buying and selling PI Coin does not constitute a crime; at most, it would involve difficulties in protecting rights through Chinese legal channels after a collapse. However, if one obtains and sells PI Coin through developing downlines, it may fit the definition of a pyramid scheme crime. Liu stated:
“Obtaining and selling PI Coin through developing downlines, once the downline levels exceed three (including three), falls under the category of a pyramid organization, leaders, or their accomplices in Chinese criminal law; typically, this could result in a sentence of up to five years in prison and fines; once the amount involved exceeds 2.5 million RMB or the number of participants exceeds 120, it could lead to more severe penalties.”
It is also noteworthy that as early as July 2023, the Public Security Bureau of Hengyang, Hunan, clearly stated that PI Coin is a scam. Lawyer Liu indicated that once judicial authorities recognize the existence of pyramid scheme activities involving PI Coin, participants may face criminal risks, and related funds could even be subject to confiscation.
