Chinese government official expelled for violating crypto mining ban

Chinese government official expelled for violating crypto mining ban

The Central Committee of the Chinese Communist Party (CCP) has expelled a top provincial official following investigations that indicate unlawful engagement with cryptocurrency mining activities, among other instances of abuse of power. 

The Central Commission for Discipline Inspection (CCDI) has alleged that former Vice Chairman of Chinese People’s Political Consultative Conference from Jiangxi province, Xiao Yi, has abused his state-backed administrative powers for undermining the political principle of “two maintenance,” that correlates to CCP’s notion of firm authority maintenance of the party.

It said that Xiao Yi had violated the new development concept, having abused power for introducing and supporting enterprises to engage in digital currency “mining” activities. These activities, said the Commission, did not comply with the requirements of the national industrial policy.

Xiao’s termination is directly related to his involvement in the introduction and support of enterprises for engaging in virtual currency mining activities. In addition, the Chinese government has also found Xiao guilty of abusing his power and influence to allow illegal profit-making activities that include raising funds for projects and construction as well as accepting bribes. 

According to a transcripted version of the CCDI report, Xiao Yi has “seriously violated” the party’s “political discipline” and its organizational structure, “integrity discipline” and work-life discipline, hence constituting “a serious job violation.” He was also “suspected of taking bribes and abusing power.”

As a result of these accusations, Xiao Yi has been expelled from his position as a Chinese authorities official other than having his property and illegal income seized for further review and prosecution.

The latest cryptocurrency ban in China has also forced the thriving crypto community — including Bitcoin traders and crypto miners and cryptocurrency exchanges — for shifting to countries having crypto-friendly jurisdictions.

In similar efforts, China’s biggest in-house cryptocurrency exchange, Huobi Global, has also been reported to have acquired new licenses in Gibraltar. The Gibraltar Financial Services Commission has authorized the Chinese crypto exchange to begin moving its spot-trading operations for affiliating Huobi Technology (Gibraltar) Co. 

According to CEO of Huobi Group, Jun Du, the worldwide cryptocurrency sector is now moving towards “regulated growth”; hence the business “must recognize the significance of aligning its activities with the trend.”