Jiangxi’s Committee of the Chinese People’s Political Consultative Conference (CPPCC) recently expelled vice-chairman, Xiao Yi, from the party, citing violation of rules. The top provincial official is accused of supporting cryptocurrency mining activities.
Showing support for crypto mining activities (as a government official notwithstanding) is against China’s regulations. Yi’s sacking and expulsion is a true testament to what the Chinese government stands for — abiding by the law.
Mr. Yi is also accused of other disciplinary violations, including interfering in judicial activities, engaging in profit-making activities, soliciting bribes, launching projects and constructions, and borrowing money in violation of the party’s [strict] regulations.
The case paints a clear picture of the Chinese government’s firmness in imposing strict regulations on all crypto-related activities.
Yi undermined the party’s political principles
The Central Commission for Discipline Inspection (CCDI) — which is the highest internal control institution of the Chinese Communist Party (CCP) — alleges that Yi abused his administrative powers, claiming he undermined the “two maintenance” political principle, which calls for maintaining the utmost authority of the party.
According to the CCDI report, Yi engaged in activities going against the party rules.
“[Xiao Yi] violated the new development concept, abused power to introduce and support enterprises to engage in virtual currency mining activities that do not meet the requirements of the national industrial policy”.
Mr. Yi directly introduced — and supported — local businesses to engage in crypto mining activities, which led to his quick termination.
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","restrictedCountries":["CA","MX"],"attributes":{},"tableRowLabel":""}],"displayAttributes":[]}"}In addition, he’s also accused of accepting bribes and allowing illegal profit-making activities to thrive such as lobbying funds for projects and construction.
In a translated version of the CID report, Yi is regarded as lacking in discipline.
“Xiao Yi is seriously violated the party’s political discipline, organizational discipline, integrity discipline, work discipline, and life discipline and constituted a serious job violation and was suspected of taking bribes and abusing power”.
Crypto activities engagement punishable by law
The National Development and Reform Commission on Wednesday warned that any state-owned unit involved in cryptocurrency-related activities, including trading, speculation, and mining will be “strictly investigated and punished”.
In a joint statement issued in September, nine government departments and the country’s central bank (The People’s Bank of China), noted that all crypto-related business activities are now considered illegal financial activities in China.
The statement was issued to further mitigate risks of digital assets such as Bitcoin or Ethereum speculating in the country.
Following the imposing of stricter bans on all digital currency trading activities in China, nearly 90% of crypto-related businesses have since shut down.
