China Expels Former Digital Currency Chief Yao Qian for Corruption
Yao Qian, a former key figure in China's blockchain and financial regulation sector, has been expelled from the Communist Party and removed from public office due to serious corruption allegations involving cryptocurrency.
China’s anti-graft authorities have officially announced that Yao, who previously headed the central bank's digital currency institute, violated multiple laws by abusing his position for personal gain.
Abuse of Power and Corruption Allegations
The anti-corruption watchdog stated that Yao leveraged his influence to support specific technology service providers and crypto ventures for personal financial benefit. Authorities claim he misused regulatory powers in policy recommendation and implementation, manipulating decisions to favor certain businesses, leading to illegal financial exchanges and “power-for-money” deals.
Investigations revealed Yao accepted an undisclosed amount of illicit funds from crypto-related deals, including bribes and misappropriation of public resources. He is also accused of accepting luxury gifts and misusing public funds for personal expenses, undermining the integrity of the regulatory system he oversaw.
A Fall from Grace for China’s Crypto Regulator
Yao Qian’s downfall is significant due to his high-ranking position and prior influence on China's crypto landscape. Appointed in 2017 as the first head of the People’s Bank of China’s Digital Currency Research Institute, he played a crucial role in developing a central bank digital currency (CBDC).
His expertise was valued within the government and blockchain community, making his alleged corruption impactful. In 2018, Yao moved to the China Securities Regulatory Commission (CSRC), continuing to shape blockchain and digital asset policy.
Known for his critical views on global crypto developments, including Bitcoin ETFs expressed in a widely read article earlier this year, Yao was a key figure in forming China’s crypto regulatory environment.
This case could further reduce the likelihood of China reconsidering its strict stance on cryptocurrencies, as the nation has enforced a complete ban on trading digital assets while advancing the development of its own digital currency, the digital yuan.