Xiao Yi, a former Chinese party official has been sentenced to life in prison for bribery and abuse of power. A portion of his charges are linked to his involvement in supporting Bitcoin mining activities.
The Chinese official reportedly used his influence to provide Bitcoin mining businesses with financial subsidiaries and backing, as well as provisions for power supply.
Abuse of Power To Help Bitcoin Mining Operations
On Aug. 22, in a report published locally, the Hangzhou Intermediate People’s Court declared Yi guilty of both bribery and abuse of power through its ruling.
The report indicates the total amount of bribes is more than approximately $17.4 million USD. “The total illegal acceptance of property is equivalent to more than 125 million yuan,” it states.
However, while the bribery charges were labeled “particularly huge,” the abuse of power charges were highlighted as “particularly serious.” His engagement with Bitcoin mining operations appears to fall under the abuse of power charges.
It explains that Yi, in his position as a Chinese party official, assisted Bitcoin mining companies, through providing financial subsidies, fund support and power guarantees. Prosecutors declare that it caused “heavy losses” to public property, the interests of the country and its citizens.
China’s Strong Stance on Crypto
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In 2021, China’s state council declared a prohibition on cryptocurrency mining. This decision came after The National Development and Reform Commission (NDRC) labelled it “undesirable” in 2019. The regulatory body highlighted its negative environmental impact.
However, Chinese authorities implemented the ban on trading Bitcoin and other cryptocurrencies in September 2017.
Earlier reports indicate that following the ban, the hash rate on Bitcoin’s network dropped 50%, with Bitcoin’s price plunging to about $30,000 in the ensuing months.
However, as crypto is becoming more widely adopted across the globe, China appears to be slowly looking into its potential. The Hong Kong Monetary Authority (HKMA) is actively advancing its regulatory framework on stablecoins, and reportedly intends to finalize by 2024.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.
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