Yao Qian, the former head of China’s Central Bank Digital Currency (CBDC) Institute, has been expelled from the Chinese Communist Party for alleged corruption related to crypto. According to the announcement, China’s top anti-corruption agency revealed several accusations involving breaking rules and laws.
Yao Qian Abused His Power
Yao was accused of misusing his power while in office. He allegedly used his position to help certain technology service providers for his benefit, claiming to be a financial technology expert while promoting their interests. Authorities said his actions harmed public trust and disrupted the development of the financial technology sector.
Furthermore, Yao allegedly took part in “power-for-money” deals using cryptocurrency. This is notable because China firmly opposes the risky use of digital assets. As such, Yao has been sent to prosecutors for further investigation and possible legal action. Meanwhile, Yao’s dismissal and referral to prosecutors highlight Beijing’s strict policy against corruption, particularly in sensitive areas like financial technology and central banking.
China Takes Decisive Action Against Crypto Corruption
In February, China’s Supreme People’s Procuratorate (SPP), the country’s highest prosecutorial authority, addressed the escalating issues of cybercrimes, particularly those involving blockchain and metaverse projects. The SPP’s action comes in response to a surge in online fraud, cyber violence, and personal information infringement.
Zhang Xiaojin, director of the Fourth Procuratorate of the SPP, cautioned citizens and participants in the digital asset space about investment scams in the local crypto economy. Xiaojin flagged the emergence of new cybercrimes leveraging the metaverse, blockchain, and binary options platforms.
Recall that in 2022, authorities apprehended a criminal syndicate suspected of exploiting the CBDC in a money laundering scheme amounting to nearly 200 million yuan ($27.4 million).
China’s Crackdown on Digital Assets
China’s strict enforcement against digital asset-related offenses contrasts with Hong Kong’s adoption of crypto-friendly regulations designed to standardize the digital asset ecosystem. The People’s Bank of China (PBoC) addressed cryptocurrency regulation and decentralized finance (DeFi) in its financial stability report.
The PBoC emphasized the importance of global regulatory coordination in overseeing the industry. In 2021, the PBoC announced stringent measures, including a ban on virtually all crypto transactions and mining activities.
This was done to curb crypto adoption in mainland China despite the country remaining a significant crypto-mining hub.
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