Coinspeaker China’s Former Digital Currency Chief Accused of Crypto Corruption
Yao Qian, a once prominent figure in China’s blockchain and financial regulation sector, has been expelled from the Communist Party and removed from his public office after facing serious allegations of corruption involving cryptocurrency.
The country’s anti-graft authorities have officially announced that Yao, a former head of the central bank’s digital currency institute, violated multiple laws and regulations, abusing his position for personal gain.
Abuse of Power and Corruption Allegations
According to a statement released by China’s anti-corruption watchdog, Yao’s actions involved leveraging his influence to support specific technology service providers and crypto ventures for personal financial benefit.
The authorities claim that Yao misused his regulatory powers, particularly in the areas of policy recommendation and implementation, to manipulate decisions that favored certain businesses. This behavior allegedly led to illegal financial exchanges, with digital assets being used to facilitate “power-for-money” deals.
The investigation revealed that Yao had accepted an “extraordinarily large amount” of illicit funds, though the exact figure remains undisclosed. These illegal gains came from his involvement in crypto-related deals, including receiving bribes and misappropriating public resources for private benefit.
Additionally, he is accused of accepting luxury gifts, such as high-end liquor, and misusing public funds for personal expenses. His actions are considered to have undermined the integrity of the regulatory system he once oversaw.
A Fall from Grace for China’s Crypto Regulator
Yao Qian’s fall from grace is significant not only due to his high-ranking position but also because of his prior influence on China’s crypto landscape. Appointed in 2017 as the first head of the People’s Bank of China’s Digital Currency Research Institute, Yao was instrumental in the country’s early efforts to develop a central bank digital currency (CBDC).
His expertise was highly valued within both the government and the broader blockchain community, making his alleged involvement in corruption all the more impactful.
In 2018, Yao transitioned to the China Securities Regulatory Commission (CSRC), where he continued to shape policy related to blockchain technology and digital assets.
He was also known for his vocal opinions on crypto developments globally, such as his critical views on Bitcoin exchange-traded funds (ETFs) which he expressed in a widely read opinion article earlier this year.
According to the announcement, his involvement in both blockchain and traditional financial systems made him a key figure in the development of China’s crypto regulatory environment.
Meanwhile, this case could further diminish any possibility of China reconsidering its hardline stance on cryptocurrencies.
The nation has long approached the rise of digital assets with caution, enforcing complete ban on trading the asset class in the country. Despite this, China has been actively advancing the development of its own digital currency, the digital yuan, further complicating the country’s relationship with the crypto space.
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China’s Former Digital Currency Chief Accused of Crypto Corruption