Crypto Corruption Charges Against China’s Ex-Digital Currency Chief

Yao Qian, once a leading figure in China’s blockchain and finance sector, faces serious corruption charges. The former head of China’s central bank digital currency institute has been expelled from the Communist Party and removed from office. 

Abuse of Power and Corruption Allegations

China’s anti-corruption authorities claim Yao misused his position for personal gain. He allegedly used his regulatory power to help specific crypto ventures and tech service providers. These decisions benefited certain businesses and helped create illegal financial exchanges.

The investigation revealed that Yao accepted large amounts of illicit funds. Although the exact figure is unclear, his involvement in bribery and misappropriation of public resources is evident. Yao is also accused of accepting luxury gifts, such as expensive liquor, and misusing public funds for personal expenses.

A Fall from Grace for China’s Crypto Regulator

Yao’s downfall is especially surprising due to his key role in China’s blockchain and digital currency efforts. In 2017, he became the first head of the People’s Bank of China’s Digital Currency Research Institute. 

This role gave him influence over China’s central bank digital currency (CBDC) development. In 2018, he joined the China Securities Regulatory Commission, continuing to shape blockchain policy. 

Yao was also known for his strong opinions on global crypto developments, including his views on Bitcoin ETFs. However, his alleged corruption now casts a dark shadow over his once-promising career.

This scandal could affect China’s approach to cryptocurrency. While the country has banned crypto trading, it is still pushing ahead with the digital yuan. This case adds complexity to China’s stance on digital assets and may influence future regulations.