• Former Chinese party official Xiao Yi has been sentenced to life in prison for abuse of power and bribery related to enabling crypto mining.
• Xiao Yi accepted bribes totaling almost $17.4 million and misused his authority to support Bitcoin mining growth.
• In 2021, China’s state council declared that crypto mining is illegal.
Chinese Party Official Sentenced to Life in Prison
The Hangzhou Intermediate People’s Court has convicted a former Chinese party official, Xiao Yi, for abuse of power and bribery. Officials clarified that he misused his authority to support the growth of Bitcoin mining by facilitating financial support and power supply arrangements. Xiao Yi received a life imprisonment sentence for accepting bribes totaling almost $17.4 million..
Crypto Mining Banned in China
In September 2017, the Chinese authorities banned Bitcoin trading and other cryptocurrencies. In 2019, the National Development and Reform Commission (NDRC) classified crypto mining as undesirable due to its negative impact on the environment. Later on, in 2021, China’s state council announced that crypto mining was banned and classified as an illegal activity.
Negative Impact on Environment
Crypto mining activities have come under intense scrutiny because they have been linked with huge electricity consumption which can lead to environmental damage such as air pollution if not managed properly. The NDRC had identified activities such as data processing and manufacturing as having a negative impact on resources conservation or environmental quality due to their high energy consumption levels..
Cryptocurrency Regulations Around the World
Due to growing concerns about potential money laundering activities associated with cryptocurrencies many countries are looking into introducing legislation surrounding digital assets transactions. For instance, India recently announced plans for a new bill that would ban all private cryptocurrencies while still allowing for government-approved digital assets..
Cryptocurrency regulations are tightening around the world in order to protect individuals from potential money laundering activities or environmental damage caused by energy-intensive cryptocurrency mining operations. As more countries introduce legislation surrounding digital assets transactions it will be interesting to see how this affects the future of cryptocurrency adoption globally.