Mark Weaden
Top Chinese official Xiao Yi faced punishment by expulsion from the Community Party for supporting cryptocurrency mining
China started the year as one of the pioneering countries for crypto, with a huge community of users as well as the leading mining community on the planet. Since then, China has banned all aspects of cryptocurrency, including public and private use; businesses, exchanges, and the use of cryptocurrency.
A leading political official in provincial China has lost his job position and faces expulsion from the Communist Party after an investigation found him to have abused his power by supporting cryptocurrency mining.
China pushes the anti-crypto campaign further
The Central Commission for Discipline Inspection and the National Supervisory Commission found that former vice-chairman of Jiangxi Provincial Committee of the Chinese People’s Political Consultative Conference Xiao Yi violated policy. Yi’s punishment follows a recent ban on all crypto-based activities, forcing many Chinese mining communities to move their business offshore.
The punishment marks the most severe punishment handed out to any senior government official for supporting cryptocurrency, which sends a clear message to all those who continue to try to operate out of sight. A governmental statement read:
“[Xiao] violated the new development concept, and abused his power to introduce and support enterprises to engage in virtual currency ‘mining’ activities that do not meet the requirements of national industrial policy.”
The investigation and following punishment weren’t simply for being involved in crypto, rather it was a result of accepting bribes and attending banquets that may have gone beyond his remit as a government official. There were also reports of nepotism and abusing the power of his position in exchange for a significant amount of property.
China distancing itself from cryptocurrency
Beijing has always had its doubts about cryptocurrency, with various bans being declared over the years. But, only this year did China follow through and actually place an outright ban, with little sign of changing its policy going forward. Despite a great deal of interest from the public, China doesn’t see decentralized currencies as the future and seeks to move forward with the digital Yuan.
Having said that, the growing popularity of cryptocurrency and the soaring market prices may become too appealing to China. As we’ve seen many times before, we could yet see a change of attitude from China.
