- Yao Qian used virtual currency to trade regulatory powers for financial benefits.
- He violated recruitment protocols, accepted luxury gifts, and misused public funds.
- Authorities confiscated his illegal earnings and transferred the case for prosecution.
Yao Qian, a top Chinese crypto advocate and former regulatory official, was expelled from the Communist Party for corruption charges involving digital currencies. This incident highlights the complexities of China’s relationship with cryptocurrencies, where a ban on trading and mining coexists with significant underground activity.
Chinese authorities have charged him with misuse of his discretionary powers, accepting bribes through digital currencies, and violating party discipline.
As the former director of the Science and Technology Supervision Department at the China Securities Regulatory Commission (CSRC), he was under scrutiny for his alleged activities, including using virtual currency in power-for-money trades. Following a disciplinary review, China’s ruling Communist Party removed him from public office.
Yao Qian’s Alleged Misconduct
Investigators accuse Yao of exploiting his position to show favoritism toward certain technology providers, accepting extravagant gifts, and seeking personal gain in hiring and procurement. He allegedly carried out these actions using cryptocurrencies, although the specific digital assets involved remain undisclosed. These allegations are particularly serious because cryptocurrencies are banned in China, making this one of the most severe breaches of discipline in recent years.
The investigation, led by the Central Commission for Discipline Inspection (CCDI) and the National Supervisory Commission, also accused Yao of organizing lavish banquets and accepting luxury items like Maotai liquor. Despite repeated warnings, Yao continued his misconduct even after the 18th, 19th, and 20th Party Congresses, showing a lack of remorse.
China’s Cryptocurrency Paradox
Authorities have seized Qian’s illicit earnings and referred the case to the judiciary for further action. Investigators stated that Yao’s actions damaged regulatory integrity and public trust.
Read also: China Sets Legal Precedent in $111M Crypto Money Laundering Bust
This development highlights the government’s intensified crackdown on corruption while exposing the complexities of its stance on digital assets. Despite banning crypto trading and mining in 2021, digital assets remain woven into China’s economic fabric. Many engage in crypto activities through over-the-counter (OTC) markets, with estimates suggesting a large “gray market” for crypto. This makes it challenging to track the precise number of traders.
However, according to Chainalysis, China still ranks high on the global crypto adoption index, indicating substantial crypto activity despite the restrictions.
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