Former Jiangxi provincial committee vice-chairman Xiao Yi is accused of abusing his position in order to undermine the government’s prohibition on all mining activity.
As a result, he was kicked out of the Chinese Communist Party (CCP). This was announced by the CCDI on Saturday. The CCDI enforces internal party rules and combats corruption. Xiao Yi also violated project spending limits, bribery, and interfered with judicial processes. Xiao Yi is likely to face criminal charges, according to the CCDI.
Since 2015, Xiao has pushed bitcoin mining as the party chairman of Fuzhou, Jiangxi province. A mining restriction may have been accelerated with the assistance of cloud mining business Genesis Mining and Chuangshiji Technology.
According to Forbes, China intends to establish its own CBDC (digital renminbi) (RMB). The CBDC provides no decentralization or privacy benefits. China rejected cryptocurrency due to its lack of borders and unregulated nature.
China was the largest bitcoin mining region in the first half of 2021, but the United States swiftly surpassed it. The People’s Bank of China and the National Development and Reform Commission declared a broad and sweeping ban on cryptocurrency-related firms on September 24, 2021.
China closed down local cryptocurrency exchanges in 2017, and the central bank announced in 2019 that it would block websites for domestic and foreign cryptocurrency exchanges, as well as Initial Coin Offerings.
In May 2021, the government prohibited institutions and businesses from providing cryptocurrency-related services. Three organizations issued a joint statement: the China Banking Association, the Payment, Clearing, and Settlement Associations of China, and the National Internet Finance Association of China.
Soon after, the government outlawed mining and ordered banks to stop facilitating transactions.