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- 1 An official of the Chinese Party receives a life sentence for supporting Bitcoin.
- 2 The charges include a life sentence for influencing Bitcoin business with financial subsidiaries.
Bitcoin mining is not supported in China. There is a large opposition within the country against cryptocurrency. The country has implemented a ban in 2021. Xiao Yi, the Chinese Party official for bribery and abuse of power, and mainly for supporting Bitcoin.
On August 22, the Hangzhou Intermediate People’s Court declared him guilty of bribery and misuse of power. The reports highlighted that the total number of bribes provided is around $17.4 Million. The total illegal acceptance of the property is equivalent to more than 125 Million Yuan.
The bribery charges are labeled huge but the misuse of the power is regarded as a serious issue. His involvement with the Bitcoin mining operations has raised the abuse of power.
As a Chinese party official, Yi has used the power wrongly by assisting the Bitcoin company by providing financial support, power supply, and fund management. Prosecutors declare that it causes huge loss to public property, the interest of the country, and its citizens.
China’s Stance on Bitcoin Mining
China always has a strong view regarding crypto. The country is never accepting the change regarding crypto. The authorities have regulated the ban priorly and are still taking a rough stance towards any matter related to it.
At the time of the ban, the reports suggested that the hash rate of the Bitcoin network had dropped to 50%. That time the price of Bitcoin has fallen to $28,000 from an all-time high of $65,000.
Crypto is becoming popular worldwide. China appears to be slowly accepting the change by looking at its potential. The Hong Kong Monetary Authority is actively advancing in developing the regulatory framework on crypto and stablecoins and plans to finalize it by 2024.
China has allowed some blockchain innovation and its central bank is advancing a digital yuan. Many entities are investing in global crypto avoiding domestic regulations. The harshness of the regulation is shown by the sentence allotted for supporting Bitcoin.
Summary
Xiao Yi, the Chinese official is facing a life sentence in prison for supporting Bitcoin. This clearly shows the stance of China towards crypto. The crypto industry is always a matter of concern in China province since it has a hawkish eye toward its favoritism. On the other hand, it is also speculated that China may accept the usage of crypto in the future but laws are maintained to minimize its illicit usage.
Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
