Chinese public official expelled after promoting crypto mining

To undermine the government’s prohibition on all mining activities, former Jiangxi provincial committee vice-chairman Xiao Yi is accused of abusing his position. 

So he was expelled from the Chinese Communist Party (CCP). The CCDI announced this on Saturday. The CCDI maintains internal party rules and fights corruption.

Xiao Yi also broke regulations governing project spending, bribery, and interfering with court proceedings. According to the CCDI, Xiao Yi is likely to face criminal charges.

Xiao promoted bitcoin mining as party chairman of Fuzhou, Jiangxi province, since 2015. With the help of cloud mining company Genesis Mining and Chuangshiji Technology, a mining prohibition may have been expedited.

Over-regulate, then shoot

And China plans to launch its own CBDC (digital renmimbi), according to Forbes (RMB). No decentralization or privacy benefits are offered by the CBDC.

China rejected crypto because of its borderless and unregulated nature.

What happened in China?

In the first half of 2021, China was the biggest bitcoin mining region, but the USA quickly overtook it. 

On September 24, 2021, the People’s Bank of China and the National Development and Reform Commission issued a broad and sweeping ban on cryptocurrency-related companies.

In 2017, China shut down local cryptocurrency exchanges, and in 2019, the central bank said it will block websites for domestic and foreign cryptocurrency exchanges, as well as Initial Coin Offerings.

In May 2021, the government banned institutions and companies from providing cryptocurrency-related services, and three organizations, the China Banking Association, the Payment, Clearing, and Settlement Associations of China, and the National Internet Finance Association of China, issued a joint statement. 

Soon after, the government banned mining and instructed banks to stop assisting transactions.

 

Image courtesy of Cointelegraph News/YouTube

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