After violating China’s digital asset policies, Xiao Yi, a government official representing Jiangxi province, was removed from his position. According to the prosecutors, he allegedly illegally supported various bitcoin mining enterprises
China Sends a Strong Message that Crypto Minning is Prohitbited
According to a recent article by the South China Morning Post, Xiao Yi, a former vice-chairman of the Jiangxi Provincial Committee, is no longer a member of the Communist Party leadership body because of his involvement in digital mining operations.
According to the announcement, he is the eighth provincial-level official to be investigated this year as part of President Xi Jinping’s escalating anti-corruption crackdown. Among them all, Xiao Yi is the highest-ranking politician who has been punished for backing cryptocurrency activity.
“[Xiao] violated the new development concept and abused his power to introduce and support enterprises to engage in virtual currency ‘mining’ activities that do not meet the requirements of national industrial policy,” the Chinese government stated.
Xiao Yi was also found guilty of other offenses, including receiving bribes and attending parties that might have jeopardized his ability to perform his duties, according to the inquiry. The prosecution determined that he traded power for money and sex and that he gave persons close to him special treatment after they gave him a big sum of money.
The Chinese government slapped a ban on all activity involving cryptocurrency earlier this year, including mining. Prior to that, the world’s most populous country was the worldwide mining leader, but the United States currently holds the top spot, with Kazakhstan in second place.
Bitmain has Halted the Shipment of Mining Rigs to China
Bitmain was hit by China’s anti-crypto campaign as well. The Beijing-based company, which is recognized as one of the world’s largest makers of bitcoin mining machines, announced last month that it would no longer ship its Antminer crypto mining rigs to addresses in mainland China.
Nonetheless, clients in international markets were unaffected by the new policy, as the firm declared that it “is working hard to secure the supply of consumers around the world.” Bitmain increased its production capacity for modular mining containers – Antbox – in order to meet global demand for mining equipment.
Since the local authorities carried out a major operation in Inner Mongolia in September, the company’s decision to exit the Chinese market seems logical. Following that, they seized a total of 10,100 mining rigs. This was the 45th such seizure in that province, with previous seizures occurring in Sichuan, Yunnan, Xinjiang, and Qinghai.
