Last updated on January 20th, 2022 at 04:35 pm
Recently, an investigation began when allegations that a senior Chinese provincial official was illegally involved in crypto mining activities. The investigation was done by the Communist Party of China (CPC) Central Committee, and once he was found guilty, the official was expelled, as he violated the laws and abused his power. Xiao Yi, the former vice-chairman of the Chinese People’s Political Consultative Conference of Jiangxi Province, was said to have illegally helped companies that were involved in crypto mining to circumvent the law.
The Central Commission for Discipline Inspection (CCDI) has come out to state that Yi used his power to flout a crucial principle, which was the “two talks” policy. According to them, Yi ‘violated the new concept of development, abused the power to introduce and help companies engage in virtual currency “mining” activities that do not meet the requirements of national industrial policy.’
The dismissal from the party was not the only punishment that was meted onto Yi for using his power to introduce and support firms that illegally mined crypto in China. Yi’s properties and income that were linked to crypto mining activities were seized and will be used in his trial. The Chinese government has added that Yi took bribes from these projects to introduce, support, and help them in raising funds in the country. They believe that ‘Xiao Yi severely violated political discipline, organizational discipline, integrity discipline, labour discipline, and party life discipline, and constituted a serious labour violation and was suspected of accepting bribes.’
The Chinese authorities have reiterated their ban and outlaw of cryptocurrency activities within the region, which has forced many, including crypto mining firms to seek solace in other countries with friendlier policies. Breaking the law attracts stringent punishments from the Chinese government.
