Politician who violated China's cryptomining ban is punished by getting expelled from communist party
The crypto market currently has to deal with intensifying headwinds coming from multiple directions. While a new infrastructure bill in the United States includes a controversial crypto taxation clause that could be amended in the future, China is increasingly enforcing its stringent anti-crypto policies which have taken effect over the course of this year.
The totalitarian government of the most populous country in the world already cracked down on cryptomining and also outlawed all financial transactions involving cryptocurrencies, and it is now starting to publicly punish violators of said bans. According to a report by the South China Morning Post, the government official Xiao Yi, a former chairman in the Chinese province of Jiangxi, has been expelled from the Chinese Communist Party after allegedly taking bribes and in return allowing cryptomining operations to continue. In addition to these infringements, it was found that Xiao apparently also traded his power for money and sex.
He is one of overall eight officials in China which have been put under investigation for violations of crypto related laws. The regime thereby sends a clear message that it will not tolerate such corruption, which consequently means that the countless remaining illegal cryptomining farms in China are likely to shut down rather sooner than later, or move to a more liberal country like the United States, which has recently taken the lead in cryptomining as it provides the largest portion of the global Bitcoin hashrate.
Source(s)
South China Morning Post, Tom's Hardware, Image: Reuters
