A former CCP official from Jiangxi Province abused his administrative powers to undermine China’s ban on mining cryptocurrencies in relation to the party’s stance on maintaining power. So let’s read more in today’s crypto news.
The Chinese Communist Party Central Committee expelled the current former CCP official after illegally engaging in cryptocurrency mining activities along with other abusers of power.
The Disciplinary Inspection Commission accused Xiao Yi, the former vice chairman of the Chinese People’s Political Consultative Conference, of abusing his state power to undermine the two-system principle of firmness.
“[Xiao Yi] violate the concept of new development, misuse power to induce and support companies in the introduction and support of activities of “mining” virtual currencies that did not meet the requirements of national industrial policy.
Xiao’s termination of the contract is directly related to his involvement in supporting other companies involved in virtual currency mining. The Chinese government accused him of abusing his authority to facilitate illegal profit-making activities such as raising funds for projects and construction, and accepting bribes. According to the CCDI report:
“Xiao Yi has seriously violated the Party’s political discipline, organizational discipline, integrity discipline, labor discipline and life discipline, which is a serious violation at work and has been suspected of accepting bribes, disclosure and abuse of power.”
Xiao Yi was removed from his post as a Chinese government official, and his property and illegal income was confiscated for criminal prosecution. The recent ban in China has forced the crypto community, including BTC and crypto miners, to move to other countries with crypto-friendly jurisdictions. China’s largest cryptocurrency exchange Huobi has also received a new license in Gibraltar as the Gibraltar Financial Services Commission authorized the Chinese exchange to shift spot trading and connect with Huobi. According to CEO Jun Du:
“The global crypto sector is moving towards regulated growth. […] Companies need to recognize the importance of aligning their activities with trends. ”
As we recently reported in our crypto news, the Huobi crypto exchange is shutting down the entire crypto business and will not facilitate or support trading in futures contracts, hybrid cryptocurrency, the suspension of all related formalities and more, as in one Announcement said last week. Huobi was the first exchange to announce its withdrawal from mainland China after the Chinese ban was imposed, notifying users of the impending closure the following September, along with other platforms such as Bitmain, Coinex, Binance, BTC.com.