KYB Verification Now Mandatory: Pi Network Enforces New Measures to Prevent Fraud on Mainnet
In a bid to bolster security and maintain trust within its ecosystem, Pi Network has announced that only KYB-verified businesses will be eligible to operate Pi Wallets on the Mainnet. The move is seen as a pivotal step to protect users and ensure legitimacy during the transition toward a fully operational Open Network.
In the latest effort to safeguard its rapidly growing community of over 60 million pioneers worldwide, Pi Network has announced a major update regarding business activity on its Mainnet. The new directive makes it mandatory for all businesses wishing to use Pi Wallets on the Mainnet to undergo and pass a Know Your Business (KYB) verification process.
According to the Pi Core Team, the KYB verification is an essential mechanism aimed at preventing scams, fake merchant operations, and unauthorized transactions within the decentralized network. Effective immediately, any business not officially verified through the KYB process will be restricted from operating a Pi Wallet for commercial purposes on the Mainnet.
The Core Team has also strongly urged users to avoid engaging with any business that claims to have a Pi Wallet on Mainnet unless it has passed KYB verification. This latest security measure aligns with the broader objective of maintaining transparency, legitimacy, and a secure transactional ecosystem in anticipation of the Open Mainnet launch.
What Is KYB and Why Is It Crucial?
Know Your Business (KYB) is a regulatory compliance process that verifies the legitimacy of a business, its ownership, and its operations. Similar to Know Your Customer (KYC) used for individuals, KYB checks help identify fraudulent or shell entities that may be set up with malicious intent.
In decentralized ecosystems like Pi Network, where peer-to-peer transactions are a core feature, the risks of scams or fake merchants pose a significant threat to adoption and credibility. By mandating KYB for businesses, Pi Network aims to ensure that users interact only with verified and transparent entities.
“Pi Network has always prioritized security and trust above all. As we build an inclusive ecosystem where real goods and services can be exchanged using Pi, it is imperative that both users and merchants operate in an environment where legitimacy is verifiable,” said a spokesperson from the Pi Core Team.
Implications for Businesses and Pioneers
The enforcement of KYB verification introduces new standards for business participation in the Pi ecosystem. Merchants who have previously operated informally or without verification must now apply through the official Pi KYB channels to maintain access to their wallets and continue offering services.
The Core Team has clarified that only those businesses that successfully complete the KYB process will be issued Mainnet-compatible wallets. This ensures a secure, traceable, and auditable network of economic participants within the Pi economy.
For everyday pioneers—the users who mine, hold, and use Pi—this change serves as a crucial protective barrier. With growing numbers of Pi-related marketplaces, barter groups, and trading hubs emerging around the world, verifying the legitimacy of service providers becomes increasingly important.
Why This Matters as Pi Moves Closer to Open Network
Pi Network has been steadily preparing for its Open Mainnet launch, which will enable full external connectivity, potential exchange listings, and greater interoperability with other blockchain platforms. The KYB rule is one of several strategic initiatives that aim to mature the ecosystem ahead of this significant milestone.
As of now, Pi remains in its Enclosed Mainnet phase, where internal transactions and development are being monitored and tested. The Core Team has outlined specific conditions that must be met before transitioning to the Open Network, including ecosystem utility, KYC/KYB thresholds, and security compliance.
Introducing KYB verification at this stage allows the Core Team to filter out bad actors before full decentralization and external exposure occur. This proactive move could potentially save users from falling prey to phishing schemes, wallet fraud, and false advertising that often plague emerging crypto projects.
Community Reaction and Implementation
Initial responses from the Pi community have been largely supportive. Many pioneers have expressed appreciation for the Core Team’s commitment to user safety. “This is the right direction. We’ve already seen examples of fake shops trying to sell goods using Pi—they vanish after collecting coins. With KYB, we can now verify who is real,” said one pioneer in the Philippines.
Others are calling for even stricter enforcement, such as flagging unverified wallet addresses or publishing an official directory of KYB-approved businesses. While such ideas are still under consideration, the Core Team has encouraged pioneers to report any suspicious activity through official channels.
In terms of logistics, the KYB verification process mirrors existing KYC procedures and includes documentation on business registration, ownership structure, and operational details. The process is overseen within the Pi App ecosystem and includes privacy-preserving technologies to protect user and business data.
Challenges and Considerations
While the initiative is a leap forward in fraud prevention, it also presents certain challenges, especially for micro-businesses in developing countries. Many small-scale vendors who currently operate within the Pi economy may lack access to formal business documentation or struggle with bureaucratic hurdles.
The Core Team has acknowledged these concerns and is reportedly working on localized solutions, including simplified KYB tracks and partnerships with regional validators. These measures are expected to maintain inclusion while upholding security standards.
It remains to be seen how quickly businesses will adapt to the new verification requirements. However, with the Open Network launch drawing nearer, there is a clear incentive for merchants to comply.
A Foundation for Trust in a New Digital Economy
The move toward KYB enforcement is more than a technical update—it is a step toward legitimizing Pi Network as a serious player in the global cryptocurrency and digital commerce space. As the network matures, the need for verified, secure, and legally recognized operations becomes indispensable.
Trust is the backbone of any currency—digital or fiat. By ensuring that only verified businesses can facilitate transactions on the Mainnet, Pi Network is reinforcing its commitment to a safer and more reliable decentralized economy.
With millions of users preparing to transact, build, and grow within the Pi ecosystem, this focus on verification and security may prove to be one of the most important decisions the network has made to date.
The Road Ahead
As the community prepares for the long-anticipated Open Mainnet phase, the focus remains on creating an environment where innovation, participation, and commerce can flourish without compromising on trust. The KYB requirement is not merely a regulatory checkbox—it is the foundation for building a sustainable and scalable decentralized economy.
Breaking🚨: Scam Prevention
— PiNewsZone (@PiNewsZone) April 30, 2025
Only KYB verified businesses will be able to have Pi Wallets on the Pi Mainnet to facilitate their operations. Refrain from interacting with non-KYB verified businesses that claim to have Pi Mainnet Wallet.#PiNetwork pic.twitter.com/WfEDKmZOpi
Pi Network continues to expand its capabilities, with new developer tools, ecosystem applications, and wallet functionalities being added regularly. The introduction of stricter verification processes sends a strong message: as the project grows, so does its accountability to its users.
Only time will tell how effective this initiative will be in curbing malicious activities. But one thing is clear—the Pi Core Team is taking no chances when it comes to protecting its pioneers.
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