It was observed that Chinese authorities continuously issued warnings about assisting others with cryptocurrency transactions. However, Chinese traders continue to trade cryptocurrencies, including Bitcoin and USDT, through over-the-counter methods in 2023.
On August 22, 2023, Yi Xiao, a former Chinese party official, has been sentenced to life imprisonment for engaging in corrupt activities, including involvement in cryptocurrency mining. The court’s judgment came as a result of his exploitation of power to facilitate crypto mining operations and his acceptance of over 125 million yuan ($17.1 million) in bribes spanning from 2008 to 2021.
Notably, during his role as a party secretary in Fuzhou city, Xiao provided support to companies engaged in cryptocurrency mining, leading to significant financial losses for public assets. Consequently, he has been handed a life imprisonment sentence, a permanent impoverishment of political rights, and the confiscation of all his possessions.
This move reflects China’s strict perspective on maintaining financial integrity and preventing corruption within the evolving technological landscape. Yi Xiao’s case stands as a stark example of the consequences for those who misuse their authority for personal gain, especially in dynamic and transformative sectors like cryptocurrency.
It is worth mentioning that China had previously imposed a ban on all cryptocurrency transactions on the mainland in September 2021. Additionally, beginning in May 2021, the country initiated a comprehensive crackdown on cryptocurrency mining operations in several provinces.
Despite China’s strict regulation of cryptocurrencies, it actively supports blockchain technology. They are setting up the National Blockchain Technology Innovation Center in Beijing.
Recently, in a report by Todayq News July 27, 2023, the Hong Kong Monetary Authority (HKMA) and the Saudi Central Bank (SAMA) had a significant meeting on July 26. They teamed up to improve how their financial systems work together. Their main goals were to encourage new ideas in finance and create a strong foundation for long-term growth between these two important financial institutions.
As China’s neighboring Hong Kong is moving forward with cryptocurrency use, with businesses and the government there accepting digital currencies. But mainland China still maintains its strict rules against cryptocurrencies.