Yao Qian, former director at the China Securities Regulatory Commission (CSRC), has been accused of accepting bribes through cryptocurrency transactions, allegedly misusing his regulatory position for personal gain.
The Central Commission for Discipline Inspection (CCDI) provided details of Yao’s corruption, which is a high-profile case in China’s fight against corruption.
Cryptocurrency Misuse and Power Exchange
The CCDI report states that Yao used cryptocurrencies to cover up bribes in the form of unlawful “power for cash trading.” At the CSRC, Yao is alleged to have used his power to strike business deals, favor companies in the technology sector, and accept a large amount of bribes.
Besides the cryptocurrency charges, Yao is claimed to have used his position to acquire personal gains. These were funding personal needs through state-authorized bodies, controlling personnel at the workplace, and negotiating deals on expensive software and hardware for certain organizations. The watchdog also criticized Yao for spending extravagantly, accepting gifts like Moutai liquor, having grand dinners, and even taking millions of yuan in loans.
The consequences of Yao’s actions were dire. The CCDI fired him from the party and from his position in the government. His ill-gotten gains were seized, and the local prosecutors are considering pressing charges against him.
Yao was appointed to the CSRC in 1997 and has held senior management positions for many years. His fall shows China’s determination to rid the financial technology and cryptocurrency sectors of corruption.
Legal Clarity on Cryptocurrency Ownership
In related news, the Shanghai Songjiang People’s Court recently issued a ruling to help understand the position of cryptocurrency ownership in the country. On 18 November, the court ruled that buying and possessing cryptocurrencies is not prohibited in China.
The judgment acknowledged that digital assets have “proprietary qualities”, but their application is still limited. In his ruling, the judge of the case, Sun Jie, stated that cryptocurrencies can be owned personally and officiated as commodities but not as legal tenders or investment tools.
This clarification came in the form of a case in which two companies argued over an unlawful initial coin offering (ICO), which is prohibited in China. In his remarks, Judge Sun said that although individuals are permitted to hold virtual currencies. However, commercial entities are not allowed to conduct related business.
This month Nano Labs Ltd. welcomed Bitcoin payments, which could indicate a change in the Chinese approach to cryptocurrency. Even though this does not suggest a complete policy backtracking, it shows increasing concern about digital assets.
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