Xiao Yi, a past Chinese government worker, has been given a life prison term for taking bribes and misusing power. Part of his wrongdoing is connected to helping Bitcoin mining.
The Chinese official supposedly used his power to give money and support to Bitcoin mining companies, and he also helped them with getting electricity.
Misuse of authority to assist Bitcoin mining activities
On August 22, a local report from the Hangzhou Intermediate People’s Court found Yi guilty of taking bribes and misusing power.
The report says the total amount of bribes he took is more than $17.4 million USD, which is like over 125 million yuan. While the bribery charges were called “very big,” the misuse of power charges were seen as “very serious.” His involvement with Bitcoin mining seems to be part of the misuse of power.
It explains that Yi, as a Chinese official, helped Bitcoin mining companies by giving them money, support, and guarantees for power. Prosecutors say this caused a lot of harm to public property, the country, and its people.
China’s firm position on cryptocurrencies
In 2021, China’s government decided to stop cryptocurrency mining. This choice was made after a government organization called the National Development and Reform Commission (NDRC) said it was not good in 2019. The NDRC was worried about its bad effects on the environment.
Before this, in September 2017, China had already stopped people from trading Bitcoin and other cryptocurrencies.
After the ban, reports say that the power used to run Bitcoin’s network fell by 50%, and the price of Bitcoin dropped to about $30,000 in the next few months.
However, because more and more people around the world are starting to use cryptocurrencies, China seems to be thinking more about it. The Hong Kong Monetary Authority (HKMA) is working on rules for stablecoins, a type of cryptocurrency that’s more steady in value. They plan to finish making these rules by 2024.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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