Chinese official sacked for supporting virtual currency mining, abuse of power
Published: Nov 13, 2021 02:35 PM
Bitcoin Photo: CFP

Bitcoin Photo: CFP

Xiao Yi, a former vice chairman of the Jiangxi Provincial Committee of the Chinese People's Political Consultative Conference (CPPCC), has been sacked and expelled from the Party for violations including supporting virtual currency mining which is against China’s regulations.

Xiao was also found with other serious violations of discipline and laws, such as borrowing money in violation of regulations to launch projects and constructions, illegally taking bribes, engaging in profit-making activities and interfering in judicial activities.

The case has shown China’s resolution to strictly regulate virtual currency related activities, market watchers said. 

The country has been tightening regulations on virtual currency trading, speculation and mining. 

Virtual currency mining activities should be cleaned up and regulated, and mining activities involving state-owned units need to be strictly investigated and punished, China’s National Development and Reform Commission said on Wednesday.

The People's Bank of China, the country’s central bank, and nine other government departments in September jointly issued a statement to further prevent and handle the risks of speculation in virtual currency transactions, clearly noting that virtual currency-related business activities are illegal financial activities.

Over 90 percent of virtual currency-related businesses have been shut down in China following the country's broad and strictest ban on virtual currency trading, industrial observers told the Global Times on October 8.