Chinese Official Fired For Supporting Crypto Activities In Jiangxi Province

China has very strict rules on crypto trading. (photo: doc. unsplash)

JAKARTA - The Central Committee of the Chinese Communist Party (CCP) expelled a high-ranking provincial official after an investigation revealed his unlawful involvement with crypto mining activities among other abuses of power.

The Central Commission for Discipline Inspection (CCDI) alleges that Xiao Yi, former vice chairman of the Chinese People's Political Consultative Conference from Jiangxi province, abused the state-backed administrative power to undermine the "two-maintenance" political principle, which is related to the CCP, the idea of maintaining the party's authority legally. firm:

"[Xiao Yi] violated the concept of new development, abused his power to introduce and support enterprises to engage in virtual currency "mining" activities that do not meet the requirements of national industrial policies," said a CCP source.

Xiao's dismissal is directly related to his involvement in introducing and supporting companies to engage in virtual currency mining activities.

In addition, the Chinese government found Xiao guilty of abusing his influence to permit illegal profit-making activities including raising funds for projects and construction and accepting bribes.

"Xiao Yi seriously violated political discipline, organizational discipline, integrity discipline, work discipline, and party life discipline, and is a serious work offense and is suspected of accepting bribes and abusing power," added the source at the CCP.

As a result, Xiao Yi was removed from his position as a Chinese government official. In addition, his property and illegal income were confiscated for review and prosecution.

The recent ban on crypto trading and activity in China has forced the thriving crypto community – including Bitcoin (BTC) and crypto miners and exchanges – to turn to countries with crypto-friendly jurisdictions.

In a similar endeavor, China's largest in-house crypto exchange, Huobi, has also obtained a new license in Gibraltar. As Cointelegraph reports, the Gibraltar Financial Services Commission authorized the Chinese exchange to begin moving its spot trading operations to affiliate Huobi Technology (Gbraltar) Co. According to Jun Du, CEO of Huobi Group:

“The worldwide cryptocurrency sector is moving towards regulated growth. [...] Businesses must realize the importance of aligning their activities with trends,” said Jun Du.