The government of China is not taking the matter of the cryptocurrency ban lightly by any means. For the better part of the last decade, cryptocurrency miners considered China an ideal place for setting up their farms. The industry was able to prosper in China for a long time on account of affordable electricity and real estate costs. However, the Chinese government has outlawed crypto mining and trading in the country in June this year.
During a time when the total cryptocurrency market cap reached $2.1 trillion, the government of China decided to crack down on the mining farms and shut down most of the companies under the pretext of deeming it harmful for the economy of the region. The crackdown is still imposed strictly in the region, and even the top government officials are not safe from breaking the new laws.
One member of the communist party has been decommissioned recently on account of soliciting and promoting crypto mining and trading options among the member of the public. As reported by a local media outlet South China Morning Post, a Chinese People’s Political Consultative Conference member representing the Jiangxi province named Xiao Yi is facing several charges by the public prosecution office.
Yi has been charged with the crime of promoting crypto trading despite the current ban in China. He is also indicted for sexual misconduct and receiving bribes. Yi has also been accused of engaging in a lavish lifestyle and is known to attend luxury banquets. He is not the first politician to go down this path. According to reports, Yi is the eighth Communist Party member who is under investigation for the illegal crypto trade promotion.
Miners Migrated to Other Countries
When the Chinese government banned crypto mining, and trading, the global hashrate supply of Bitcoin was halved in a matter of a few weeks. Since then, the slack has been picked up by the miners who have migrated to top 3 destinations like Texas, Kazakhstan, and Russia. The government of China also blocked cryptocurrency social media accounts, exchanges, and influencers on all local browsing sites.
However, due to the decentralized nature of cryptocurrencies, it will take some more time for the government to contain the situation more effectively. The communist party has recently launched a new program called the common prosperity. This campaign aims to redistribute wealth and change the taxation infrastructure in the region. Meanwhile, the upper crest of Chinese billionaires is trying to use cryptocurrencies for sending their wealth outside of the country and avoid paying taxes.