China’s Communist Party calls for a crackdown on corruption that uses crypto and blockchain
China’s ruling Communist Party has called for a crackdown on corruption involving virtual currencies and blockchain as part of a broader push for stricter internal discipline.
The directive, published by Xinhua on Nov. 1, appears in a section on fighting corruption. It calls for efforts to "resolutely crack down on corruption carried out through the internet, virtual currency, cross-border funds, blockchain and the like."
The decision does not name bitcoin or other specific cryptocurrencies. It also does not address cryptocurrency trading, mining, or stablecoins. Instead, it focuses on broader methods of illicit financial activity.
The Party’s Fifth Plenary Session of the 20th Central Committee adopted the decision on Oct. 29. The text deals with what the Party calls "full and rigorous Party self-governance" and a push for stricter discipline.
China has had a long history of restrictions on crypto. In December 2013, the People’s Bank of China barred banks from handling bitcoin transactions. In September 2017, the central bank banned initial coin offerings and exchanges serving people in China.
In September 2021, the central bank and other agencies declared all crypto transactions illegal, and Beijing moved against mining. A central bank-led notice issued on Feb. 6 restated that virtual currency business on the mainland is illegal financial activity.
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