The Central Committee of the Chinese Communist Party (CCP) expelled a senior provincial official after investigations suggested illegal involvement in cryptocurrency mining activities, among other abuses of power.
The Central Commission for Disciplinary Inspection (CCDI) claimed that Xiao Yi, former vice chairman of the Jiangxi Province Chinese People’s Political Consultative Conference, abused his state-backed administrative powers to undermine the political principle of “double maintenance”, which relates to the PCC’s notion of firmly maintaining the authority of the party:
“[Xiao Yi] it violated the new development concept, abused the power to introduce and support companies to carry out virtual currency ‘mining’ activities that do not comply with the requirements of the national industrial policy. “
Xiao’s dismissal was directly related to his involvement in introducing and supporting companies to conduct virtual currency mining activities. Furthermore, the Chinese government found Xiao guilty of abusing his influence to allow illegal activities for profit, including fundraising for projects, establishing crypto mining centers, and accepting bribes. According to a translated version of the CCDI report:
“Xiao Yi seriously violated the party’s political discipline, organizational discipline, integrity discipline, work discipline and life discipline, and constituted a serious labor offense and was suspected of taking bribes and abusing his power.”
As a result, Xiao Yi was removed from his post as a Chinese government official, in addition to having his property and illegal income confiscated for review and prosecution.
The recent ban on cryptocurrency activities in China has forced the thriving crypto community, including Bitcoin (BTC) advocates, miners, and exchanges, to relocate to countries with pro-crypto jurisdictions.
In a similar effort, China’s largest cryptocurrency exchange, Huobi also acquired new licenses in Gibraltar. As Cointelegraph reported, The Gibraltar Financial Services Commission authorized the Chinese exchange to begin shifting its spot trading operations to the subsidiary Huobi Technology Co. (of Gibraltar). According to Jun Du, CEO of Huobi Group:
“The cryptocurrency sector around the world is moving towards regulated growth. […] The company must recognize the importance of aligning its activities with the trend. “
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