The Legal Status of PI Network in Indonesia

As the digital landscape evolves, new technologies like cryptocurrencies are gaining attention worldwide. One such project is PI Network, a mobile-based cryptocurrency that allows users to mine coins using their smartphones. However, the legal status of PI Network in Indonesia remains a topic of discussion among regulators and the public.

Regulatory Stance on PI Network

In Indonesia, the legal framework for cryptocurrencies is primarily overseen by the Ministry of Trade (Kemendag) and the Commodity Futures Trading Regulatory Agency (BAPPEBTI). According to these authorities, PI Network is considered illegal as it is not registered with BAPPEBTI. Deputy Minister of Trade, Jerry Sambuaga, confirmed that PI Network does not have the necessary registration and warned the public to be cautious of potential fraudulent activities associated with it. He emphasized that the only legal currency in Indonesia is the rupiah, and any cryptocurrency not registered with BAPPEBTI is deemed illegal. Additionally, he clarified that he had never endorsed or supported PI Network, despite misleading videos circulating online suggesting otherwise.

Implications for Users

For Indonesian users, this means that while participating in PI Network is not explicitly illegal, the platform lacks official recognition and regulatory oversight. Users should be aware that:

• PI coins cannot be used as legal tender in Indonesia and are not recognized as an official currency.
• Transactions involving PI coins are not protected under Indonesian law, as they are not registered as commodities or securities.
• Engaging in activities related to PI Network may expose users to legal risks, especially if the platform evolves into a tradable asset without proper registration.

Ongoing Developments

As of now, PI Network remains in its developmental phase, and its future in Indonesia depends on how it aligns with the country's regulatory requirements. If the platform seeks to become a tradable asset or facilitate transactions, it would need to comply with BAPPEBTI's regulations, which include registration and adherence to anti-money laundering (AML) and know-your-customer (KYC) standards.

Conclusion

The legal status of PI Network in Indonesia is currently ambiguous. While it is not officially recognized or registered with the relevant authorities, users are advised to exercise caution. As the regulatory landscape for cryptocurrencies continues to evolve, it is essential for users to stay informed about any changes that may affect their participation in platforms like PI Network.