Crypto's Delicate Position in China & India

Top Chinese Official Pleads Guilty to Helping Bitcoin Miners

  • Xiao Yi was accused of supporting Bitcoin Miners with subsidies, capital aid and electricity assurance.
  • China banned Bitcoin mining activities last year but has failed to enforce a full ban.
  • China is slowly returning to its place as an active player in the crypto market after a new report noted that Mainland China had more than 1,400 crypto companies.

Xiao Yi, the former Communist Party secretary of the City of Fuzhou, pleaded guilty to corruption charges and admitted that he received bribes in exchange for favors. Yi was charged with collecting more than 125 million yuan ($18 million) in bribes while serving as director from 2008 to 2021.

As per a local source, Yi also pleaded guilty to charges involving transactions between himself and Bitcoin miners from 2017 to 2021. Yi’s illegal dealings with Bitcoin miners breach national policy, which outlaws such activities. According to local sources,

Xiao Yi provided support to cryptocurrency mining companies in the form of subsidies, capital aid, and electricity assurance. These acts were contrary to national regulations, the theory of New Development, and led to massive losses in public property, leading to adverse consequences.

The court announced an adjournment and sentencing at a later date. Yi is expected to receive a heavy sentence for his crimes.

Last year, the Chinese government banned crypto mining activities as well as investments in the sector. However, despite the ban, China has retained its position as the world’s second-largest bitcoin mining region. It appears the Asian country has been unable to enforce a full ban.

Surprisingly, the number of blockchain firms continues to increase in China, regardless of apparent restrictions. A recent report by the China Academy for Information and Communications Technology revealed that Mainland China had more than 1,400 blockchain companies in operation.

Furthermore, the release noted that several China-based learning institutions now offer blockchain-based certification courses. The growth in blockchain activities in China could slowly mark the country’s return to the crypto scene.

China already has plans to launch a national NFT marketplace. The Asian giant also identified blockchain technology as one of its priorities for the coming year.

Lawrence Woriji Verified

Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.

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