China’s new crackdown on cryptocurrencies
China’s new crackdown on cryptocurrencies
Regulation

China’s new crackdown on cryptocurrencies

By Fabiana D'Urso - 15 Nov 2021

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China continues its battle against all things related to cryptocurrencies.

China expels official: he traded crypto

After the heavy restrictions that have led many miners to look to other countries to locate their mining activities, it is now time to target individuals.

Unsurprisingly, it is a senior official who has been expelled on serious charges involving cryptocurrencies.

The CCP, the Chinese Communist Party, has investigated, accused and expelled a high-ranking politician from Jiangxi province. According to one-sided communications from the party and the Central Commission for Discipline Inspection (CCDI), Xiao Yi was directly involved in the purchase of funds from the cryptocurrency business.

In addition, he is alleged to have facilitated access to dynamics that comply with the presence of funds linked to decentralized assets. This highly discriminatory punitive action, which was also communicated by internal organs of the Party, according to the dictatorial and repressive Chinese line, should serve as an example for all others.

China crackdown

The charges against the expelled official

Expelling a high-ranking official on charges of money laundering and inducing illegal activity related to cryptocurrencies is a very harsh note intended as a practical demonstration.

Xiao Yi is the Vice-Chairman of the Chinese People’s Political Consultative Conference, and for the CCP he is guilty of interfering with the straightforward action of his role. By abusing his powers, he is alleged to have favoured a type of economy opposed by the government because it is outside the institutional dynamics.

By failing to comply with “mandatory ” internal political principles, all officials or insiders have been widely warned.

For the Chinese government, the need to keep the party’s authority high and alive is the first rule of order and continuity to ensure that “imposed” laws are respected.

Xiao is accused of having given credit and support to many of those companies or businesses that had started up thanks to mining. The inability to manage and control activities deriving from the use of the decentralized market is a big problem for China.

The excuse of eco-sustainability applied to the mining farms that existed until a few months ago did not clarify the situation.

The expelled Vice-President also carries heavy charges of money laundering and aiding and abetting bribes. Although the CCDI has drawn up and made public a post-conviction analysis report on the official, this does not alter the fact that the truth can never be proven on either side.

If the government considers Xiao Yi to have “seriously violated the laws governing the party’s internal policy”, it will be difficult to prove otherwise.

The law also stipulates that crimes of this kind are followed by the seizure of the defendant’s personal assets and all property in his name. This is another example that is popular for its message and immediate action.

Regulation of cryptocurrencies

However, it is not only China that is concerned about the continued rise of the cryptocurrency world. Many countries are trying to regulate at least part of this flow, which is becoming more important and present in people’s economies every day.

If China does not want to allow this process of new financial conception to evolve, it will be other states, as is already the case, that will give a legal welcome to this now unstoppable industry.

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