An investigation by Chinese watchdogs determined that Xiao Yi, a senior official from Jiangxi province, had supported cryptocurrency mining companies.
The Chinese government expelled a senior provincial official from office and removed him from the Chinese Communist Party for allegedly abusing his power to show support to cryptocurrency mining and violating state bans.
An investigation by Chinese authorities reportedly found that Xiao Yi, former vice-chairman of the Jiangxi provincial committee of the Chinese People’s Political Consultative Conference, had disrupted 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 information got indicated in an official Party statement revealed on Saturday.
Chinese Official got Expelled and Awaits Trial
The investigation and sanctions against Xiao Yi arrived shortly after China released a strong offensive against cryptocurrency mining operations and activities linked to such assets in general. The bans had an impact on the local crypto industry, forcing companies to close or move their operations abroad.
According to the South China Morning Post, Xiao Yi is not the first official to get investigated by Chinese authorities for alleged violation of local policies. According to the outlet, he is now the eighth provincial official to get investigated this year amid President Xi Jinping’s intensive anti-corruption campaign.
Although the representative is the highest-ranking Chinese official to get punished for supporting cryptocurrency mining, the decision 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.
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 addition of Bitcoin mining and other cryptocurrencies to the list of prohibited industrial activities in the country.
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, including trading and mining, illegal.
The ban related to digital currencies came amid coordinated crackdowns by local bodies to halt 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.
Putting aside the latest policies on digital assets, the South China Morning Post says the government has investigated other officials in Jiangxi province. Li Yihuang, the vice governor of the province, got investigated in 2018 and Shi Wenqing, a senior lawmaker, got investigated last year. Both were found guilty of embezzlement and misappropriation of public funds and got subsequently fired and expelled from the party.
By: Jenson Nuñez
