Former China Securities Regulatory Commission Director Yao Qian Accused of Accepting Bribes via Cryptocurrency Transactions

Yao Qian, former director at the China Securities Regulatory Commission (CSRC), has been accused of accepting bribes through cryptocurrency transactions

Former China Securities Regulatory Commission (CSRC) official Yao Qian has been accused of accepting bribes via cryptocurrency transactions, abusing his regulatory authority for personal gain, according to the Central Commission for Discipline Inspection (CCDI).

The CCDI reportの詳細を明らかにした high-profile corruption case in China's fight against the vice.

Cryptocurrency Misuse and Power Exchange

The CCDI report alleges that Yao used cryptocurrencies to disguise bribes in the form of illicit “power for cash trading.” At the CSRC, Yao is accused of abusing his power to strike business deals, favoring companies in the technology sector and accepting large sums of bribes.

In addition to the cryptocurrency charges, Yao is accused of using his position to gain personal benefits, including having state-authorized bodies fund his personal expenses, manipulating personnel at the workplace, and negotiating deals on expensive software and hardware for certain organizations. The watchdog also slammed Yao for spending extravagantly, accepting gifts like Moutai liquor, hosting lavish dinners and even taking out loans amounting to millions of yuan.

As a consequence of his actions, Yao has been expelled from the party and dismissed from his government post by the CCDI. His illicit gains have been confiscated, and local prosecutors are considering pressing further charges against him.

Appointed to the CSRC in 1997, Yao held senior management positions for several years. His downfall highlights China's efforts to purge the financial technology and cryptocurrency sectors of corruption.

Legal Clarity on Cryptocurrency Ownership

In related news, the Shanghai Songjiang People's Court recently made a ruling that sheds light on the understanding of cryptocurrency ownership in the country. On Nov. 18, the court ruled that buying and possessing cryptocurrencies is not illegal in China.

The judgment acknowledged that digital assets have “proprietary qualities,” albeit their application is still limited. In his verdict, the case judge, Sun Jie, stated that cryptocurrencies can be personally owned and recognized as commodities, but not as legal tenders or investment instruments.

This clarification emerged in a case where two companies disputed an illicit initial coin offering (ICO), which are banned in China. Judge Sun remarked that while individuals can hold virtual currencies, commercial entities are prohibited from conducting related businesses.

This month, Nano Labs Ltd. accepting Bitcoin payments, which could indicate a shift in the Chinese approach to cryptocurrencies. While this doesn't signal a complete policy U-turn, it does show a growing concern for digital assets.