China arrests senior Communist Party official for supporting bitcoin mining
The Central Commission for Discipline Inspection (CCDI), China’s government’s leading anti-bribery body, expelled a high-ranking Communist Party official in Jiangxi Province for alleged corruption linked to bitcoin mining activity.
The information is from the South China Morning Post (SCMP), in a publication made this Saturday (13).
According to the journalist Colin Wu, a reference in the coverage of the Chinese crypto market, Xiao Yi, 59, was also arrested.
“The investigations revealed that Xiao Yi abused his power to encourage companies to engage in virtual currency mining activities that are not in accordance with national policy,” CCDI said in Saturday (13), according to the SCMP. Now Yi must face the Chinese court.
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Xiao Yi, who is 59, must now face charges of conspiracy against the government, abuse of authority, bribery, judicial obstruction and “moral decay,” which is when an action violates a country’s moral values.
Breaking: A senior Chinese official was arrested for abusing his power to introduce and support companies to engage in cryptocurrency mining activities that do not meet the requirements of the national industrial policy. Related Reading：https://t.co/JytnwKU2Y5
— Wu Blockchain (@WuBlockchain) November 13, 2021
In September of this year, the Chinese government started a new wave of repression against cryptocurrencies in the country, continuing the bans it has imposed on the sector in the past, banning mining, trade and access to the financial system of intermediaries. On mining, the argument was also about China’s efforts to achieve its carbon neutral targets.
With the imposition of the Chinese government, big bitcoin mining companies started to migrate to other countries, like the United States. According to a recent Cambridge University study, the US has become a global leader in the Bitcoin mining industry.