Xiao Yi’s support of cryptocurrency mining has led to his expulsion from the Communist Party of China.
Yi, a former vice-chairman of the Jiangxi Provincial Committee of the Chinese People’s Political Consultative Conference, allegedly committed ‘serious violations of discipline and law’.
China’s anti-corruption watchdog, The Central Commission for Discipline Inspection, announced the news of Yi’s alleged actions that went against the national industrial policy as well as further accusations of Yi taking bribes.
The ban of cryptocurrency in China broke in September and a government statement stated Xiao Yi’s alleged violation of the new laws regarding the illegality of cryptocurrency.
“[Xiao] violated the new development concept, and abused his power to introduce and support enterprises to engage in virtual currency ‘mining’ activities that do not meet the requirements of national industrial policy,” the government statement read.
China’s mission of reaching carbon neutrality by 2060 is partly the reason for the government’s attitude towards cryptocurrency – it sees the industry as a risk of harming those climate change targets.
China’s crypto mining
Until China’s crackdown on crypto, the nation remained the premier location of Bitcoin miners. The Cambridge Centre for Alternative Finance (CCAF) found China’s share of mining fell from 75.5% in September 2019 to 46% in April 2021.
The Bitcoin mining ban in China has led miners to migrate to the likes of the United States and Kazakhstan, with both nations harbouring the highest amount of Bitcoin miners in the world.
The National Development and Reform Commission (NDRC), together with 10 authorities, issued a statement to eradicate cryptocurrency mining.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.