Yao Qian, the former head of the Science and Technology Supervision Department of the China Securities Regulatory Commission (CSRC) and a key figure in China's digital currency development, is now at the center of a cryptocurrency bribery scandal.
He was expelled from the Communist Party and removed from public office after being accused of using virtual currencies to facilitate bribery.
The charges, announced by the Central Commission for Discipline Inspection (CCDI) and the National Supervisory Commission, include allegations of serious misconduct, including abusing his position for personal financial gain and engaging in improper dealings with technology providers.
Yao’s downfall marks a dramatic turn for a figure once celebrated for contributing to China's digital finance ambitions.
Yao Qian Cryptocurrency Bribery Allegations: A Surprising Claim
Yao Qian is accused of using virtual currencies to engage in “trading power for money,” which points to his involvement in corrupt dealings under the guise of blockchain and cryptocurrency transactions.
According to the CCDI's report, Yao manipulated regulatory authority to benefit specific technology service providers.
He allegedly facilitated business expansions, software and hardware procurement, and other illicit transactions by abusing his influence.
The report also details other serious breaches of discipline, including accepting expensive gifts, arranging luxurious banquets, and seeking benefits in employee recruitment.
In some instances, Yao allegedly handed personal expenses to supervised entities, borrowed significant sums of money illegally, and invested in enterprises while accepting bribes amounting to an "extremely huge" sum.
Yao's alleged misconduct extended to fostering ties with those described as "key training targets" for illicit activities.
This, combined with his participation in superstitious practices—a cultural taboo in Communist Party governance—cemented the accusations of deviating from the party’s disciplinary principles.
The Rise and Fall of Yao Qian
Yao Qian's trajectory is one of sharp contrasts. As the first director of the People's Bank of China's (PBoC) Digital Currency Research Institute, he laid the groundwork for China's central bank digital currency (CBDC), the digital yuan.
His technical expertise and deep understanding of blockchain technology earned him recognition as a key player in China's ambitious push to dominate the global fintech landscape.
Yao's writings and public commentary revealed his vision for a blockchain-powered future where centralized and decentralized systems could coexist.
He advocated for integrating digital currency attributes into existing banking systems, an approach that showcased his grasp of digital currencies’ technical and economic dimensions.
However, Yao’s tenure coincided with China's increasingly stringent regulatory measures against cryptocurrencies.
While he was regarded as an open-minded advocate for innovation, the regulatory crackdown often contradicted his progressive stance.
Yao Qian's prosecution casts a shadow over China's digital currency program, which has positioned itself as a trailblazer in the global race for CBDC adoption.
His involvement in corrupt practices, particularly through virtual currency, exposes vulnerabilities in integrating CBDC within existing governance frameworks.
Cryptocurrency as a medium for bribery is part of a growing concern about its misuse in illicit activities.
Recently, BIT Mining, formerly 500.com, settled a U.S. SEC case by agreeing to pay a $4 million civil penalty for violating the Foreign Corrupt Practices Act (FCPA).
From 2017 to 2019, the company engaged in a crypto bribery scheme to secure a license to develop an Integrated Resort (IR) in Japan following the legalization of gambling.
Allegedly, $2.5 million in bribes, funneled through sham consulting contracts and other illicit means, were paid to Japanese officials, including members of parliament.
The post China's Ex-CBDC Chief Yao Qian Accused of Cryptocurrency Bribery, Faces Prosecution: Report appeared first on Cryptonews.
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