The Chinese Communist Party (CCP) has called for intensified measures against virtual currencies, blockchain, cross-border funds, and internet-driven corrupt practices. This appeal forms part of a broader resolution aimed at tightening the party’s internal discipline.
Resolution Cites Corruption via Novel Channels
Adopted during the Fifth Plenary Session of the 20th Central Committee on October 29, the resolution’s corruption section briefly mentions these channels. The full text, published by Xinhua on November 1, demands resolute action against corruption committed through the internet, virtual currencies, cross-border funds, blockchain, and similar methods.
The document refrains from naming Bitcoin or any specific cryptocurrency and does not introduce any new regulations or policy shifts concerning cryptocurrency trading, mining, or stablecoins.
The resolution calls for resolute targeting of corruption conducted via the internet, virtual currencies, cross-border funds, blockchain, and similar avenues.
Emphasis on Internal Discipline and Covert Practices
The document emphasizes the CCP’s approach of “comprehensive and strict self-governance.” It calls for thorough investigation of new and covert forms of corruption, highlighting areas like anticipated benefits, assets held in proxy, intermediary agents, and transitions that could foster conflicts of interest among public officials.
As the central ruling party at the heart of China’s political decision-making, the CCP’s statements often signal oversight and enforcement priorities for official institutions.
China’s Enduring Restrictions on Cryptocurrency
China’s crackdown on cryptocurrencies is not new. Back in December 2013, the People’s Bank of China and other regulators prohibited banks from facilitating Bitcoin transactions. In September 2017, they banned initial coin offerings and exchanges serving Chinese users. By September 2021, the central bank and other agencies declared all cryptocurrency transactions illegal and took comprehensive steps against mining operations.
The latest directive, published in February and spearheaded by the central bank, reiterated this stance, categorizing virtual currency activities as illegal financial activities on the Chinese mainland. The directive also barred yuan-pegged overseas stablecoins and unauthorized real-world asset tokenization.
The new resolution does not present a separate initiative for cryptocurrency trading; it primarily targets the prevention of corruption using virtual currencies and blockchain tools.
The latest resolution points more towards political and administrative oversight than direct market regulation. Consequently, it focuses on corruption risks tied to public officials and cross-border financial flows rather than on the general ban on cryptocurrencies in the sector.
