Chinese Authorities Intensify Crackdown on Cryptocurrencies

The Chinese authorities have cracked down on cryptocurrency-related activities in recent years. The crackdown intensified this year, with cryptocurrency mining, trading and other crypto-related activities all banned.

Regional CCP Chief in China Arrested Over Crypto Links

The Chinese government has cracked down on cryptocurrency companies in recent months. The crackdown has been extended to other Chinese companies, government agencies and public servants.

Over the past few months, authorities in the country have banned Bitcoin mining and trading, forcing mining farms in the region to relocate to other parts of the world. Yesterday, a high-flying regional Communist Party official was arrested for allegedly supporting cryptocurrency mining.

Xiao Yi, the former Vice Chairman of the Jiangxi Provincial Committee of the Chinese Communist Party (CCP), was arrested, and his case has been handed to the Supreme People’s Procuratorate. According to the allegations, Yi took bribes and abused his power in favor of cryptocurrency mining.

The CCP claims that Yi supported cryptocurrency mining in exchange for bribes and sex. He was also accused of attending orgiastic parties thrown by individuals, mining pools, or companies. These activities swayed his decisions in allowing the cryptocurrency mining companies to continue operating.

China’s Crackdown on Cryptocurrencies has Been Raging on for Long

The Chinese government has cracked down on numerous cryptocurrency activities over the past few years. In June, the People’s Bank of China (PBoC) told banks and other private financial institutions in the country not to get involved with cryptocurrencies. This made it impossible for cryptocurrency companies operating in China to gain access to the traditional financial systems. It also made it tough for crypto traders and investors to fund their crypto trading accounts.

In July, the Beijing office of the People’s Bank of China shut down a company developing software for cryptocurrency transactions. The authorities went on to block numerous cryptocurrency websites, including Coinmarketcap and Coingecko, making it tough for Chinese residents to gain access to crypto market data.