China’s state daily called crypto a channel of corruption and urged action
A call to crack down on bribery using cryptocurrency and other electronic payments has appeared on the China Legal Daily website. The publication cited several legal scholars who attended the annual meeting of the Chinese Association for Integrity and Legal Studies, where punishing new forms of corruption was a major topic.
The Jan. 1 issue of Legal Daily, published by the Central Commission for Political and Legal Affairs of the Communist Party of China (CCP), quoted Zhao Zhuyun, an associate professor at Hebei University Law School, as saying that virtual currency and electronic gift cards have “become hidden channels” for bribery, such as cards and digital currencies in “cold storage.” Equipment can be taken abroad for redemption.
Zhao added that the CCP is fighting corruption “on an unprecedented scale.”
#China's rulers have been using anti-corruption campaigns to sideline rivals and consolidate power. #XiJinping is increasingly tying his power to a new distinction: the never-ending #purge. via @WSJ
— CryptoPet22 (@CryptoPet22) January 1, 2024
Mo Hongxian, a professor at the Wuhan University School of Law, cited Bitcoin (BTC) by name and said the virtual currency's anonymity and difficult traceability “provides a natural convenience for illegal and criminal activities.” He added that even though they are not recognized in China, transactions in virtual currencies require judicial attention.
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The article ends with the translation:
“In order to punish new forms of corruption, we need to improve the legal and regulatory system, we need to expand the scope of bribery crimes. […] Strengthens monitoring data in areas where new forms of corruption are likely to occur.
The article comes less than a week after two government agencies – the Supreme Public Prosecutor's Office of Foreign Exchange and the State Administration – warned officials not to use the stablecoin Tether (USDT) as an intermediate currency for foreign currency transactions with the yuan. Such transactions are illegal.
Despite a ban on cryptocurrencies, China has embraced blockchain technology for purposes such as identity verification. In addition, the e-CNY central bank digital currency, although still in the experimental stage, is highly developed. Despite its limited geographic spread, the digital yuan will be used in nearly $250 billion in transactions in China and the sale of goods globally by June 2023.
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