That has been determined by a Chinese court Yi Xiaoa former member of the Chinese Communist Party (CCP), a sentence of life imprisonmentblaming him for numerous acts of corruption, including facilitating the cryptocurrency mining in the country.
According to the lawsuit, Xiao, former vice chairman of the Jiangxi Provincial Committee of the People’s Political Consultative Conference, took bribes totaling more than 125 million yuan (about R$83 million) over a decade.
His complicity with cryptocurrency mining companies during his tenure as secretary has become particularly controversial as mining is a banned activity in China.
In the crusade against cryptocurrencies, Chinese is sentenced to life imprisonment
The court claimed that Xiao’s crimes were caused “significant losses to public property, national and popular interests”. In addition to his imprisonment, Xiao was stripped of all political rights for the rest of his life and his vast personal fortune was confiscated.
China’s relationship with the cryptocurrency world has always been one of war. In 2013, the country had already made its position clear by banning banks from transacting cryptocurrencies.
The situation worsened in 2017 with a ban on ICOs (Initial Coin Offerings) in an effort to protect the national currency, the yuan, and prevent the outflow of funds from the country.
The focus turned to Bitcoin (BTC) mining in 2019, when the National Development and Reform Commission (NDRC) labeled the activity as “undesirable.”
China and its fight against cryptocurrencies
In the year 2020, state repression of the emerging cryptocurrency industry has increased. The People’s Bank of China (PBoC) has taken a major step by announcing its intention to block more than 100 foreign websites offering cryptocurrency trading services.
However, it was in 2021 that the cryptocurrency mining ban really took hold. Three provinces, Inner Mongolia, Xinjiang and Sichuan, were recognized as China’s largest Bitcoin (BTC) mining hubs.
It is estimated that the country was responsible for nearly half of global Bitcoin mining. The final verdict against mining was handed down in September 2021, with the official decision to completely eradicate the activity.
Yi Xiao’s case serves as a clear example of the repercussions that await those who challenge the Chinese government, especially when it comes to cryptocurrency-related activities.
While many in the cryptocurrency ecosystem see the Chinese crackdown as an opportunity for other countries to become leaders, the Chinese government clearly sees Bitcoin as a threat to its financial control and national stability.
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Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
