Communist Party of China expelled official for violating crypto mining ban

Texas could raise funds through NFT and harness 'abundant' energy to mine Bitcoin

Communist Party of China expelled official for violating crypto mining ban By Hannah perez

An investigation by Chinese watchdogs determined that Xiao Yi, a senior official from Jiangxi province, had supported cryptocurrency mining companies.

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The Chinese government removed a senior provincial official from office and expelled from the Chinese Communist Party for allegedly abusing his power to support cryptocurrency mining and violating state bans.

An investigation by the Chinese authorities reportedly found that Xiao Yi, former vice chairman of the Jiangxi provincial committee of the Chinese People’s Political Consultative Conference, had violated national policies on digital assets.

The Central Commission for Disciplinary Inspection (CCDI) determined that Xiao Yi abused his administrative power to introduce and support companies that carry out crypto mining activities. This was indicated by a official statement of the Party published on Saturday.

[Xiao Yi] it violated the new development concept, abused the power to introduce and support companies to engage in virtual currency “mining” activities that do not comply with the requirements of national industrial policy.

Chinese official is expelled and awaits trial

The investigation and sanctions against Xiao Yi come shortly after China launched a strong offensive against cryptocurrency mining operations and activities related to such assets in general. As you have reviewed DailyBitcoin, the bans had an impact on the local crypto industry, forcing companies to close or move their operations abroad.

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In accordance with South China Morning Post, Xiao Yi is not the first official to be investigated by Chinese authorities for alleged violation of local policies. According to that medium, he He is now the eighth provincial official to be investigated this year amid President Xi Jinping’s intensive anti-corruption campaign. Although it should be noted that He is the highest-ranking Chinese official to be punished for supporting cryptocurrency mining, which sends a strong signal about the government’s stance on the matter.

Beyond breaching crypto mining bans, the investigation also found that Xiao Yi had abused his power by more widely accepting bribes. According to a CCDI report cited by Cointelegraph, the Chinese government found Xiao guilty of abusing his influence to allow illegal activities for profit, including fundraising for projects and exchanging power for money and sex.

Xiao Yi seriously violated the party’s political discipline, organizational discipline, integrity discipline, labor discipline, and life discipline, and constituted a serious labor offense and was suspected of taking bribes and abusing power.

As punishment, Xiao Yi was removed from his post as a Chinese government official, in addition to having his property and illegal income seized for review and prosecution.

A message on the status of the crypto mining ban

Last month, the National Development and Reform Commission of China (NDRC), one of the central government agencies, opened a public consultation on the incorporation of mining from Bitcoin and other cryptocurrencies to the list of prohibited industrial activities in the country.

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The consultation, most unlikely to lead to a local policy reversal, came a month after the People’s Bank of China (PBoC) declared essentially all cryptocurrency transactions illegal, including trading and mining.

The ban related to digital currencies came amid coordinated crackdowns by local bodies to stop crypto mining operations in the country. The Chinese government had highlighted that the policies emerged as part of the government’s efforts to save energy and reduce carbon emissions.

As a result, China has lost its dominance within the mining industry of Bitcoin. The former mining power, which in April 2020 represented about 65% of hashrate global of Bitcoin, became less than 1% of the participation, according to the latest data published by the Index of Cambridge Bitcoin Electricity Consumption. However, despite these data and the severe ban, some reports suggest that there are still illegal crypto mining operations within the country.

Setting aside the latest policies on digital assets, South China Morning Post he says the government has investigated other officials in Jiangxi province. Li Yihuang, the vice-governor of the province, was investigated in 2018 and Shi Wenqing, a senior lawmaker, was investigated last year. Both were found guilty of embezzlement and misappropriation of public funds, fired and expelled from the party.


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Sources: South China Morning Post, Cointelegraph, file

Hannah Estefanía Pérez’s version / DailyBitcoin

Image from Unsplash

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