Corrupt Chinese officials exploit crypto for illicit cross-border transactions

2024-01-02 01:34:02

Chinese media are repeating concerns about the use of cryptocurrencies to facilitate corruption.

Local media published a report entitled “Virtual Currency Electronic Gift Cards Open New Channels for Corruption Crimes and Benefit Transfer.” It states that cryptocurrencies, particularly Bitcoin (BTC), are opening up new channels for corruption and benefit transfer in China.

In particular, incidents of bribery through means such as red packet transfers and electronic gift cards are becoming increasingly common, and these transactions are difficult to trace due to their secretive nature in the digital sphere.

“Gaps and loopholes in relevant s and mechanisms provide opportunities for some people to seek personal gain and rent-seeking with power. Under such circumstances, if officials do not have a strong sense of integrity and self-discipline and are not determined enough to fight corruption, they can easily slip into the abyss of corruption.”

Peng Xinlin, professor at Beijing Normal University

According to Chinese media, what is needed now is to understand and effectively counter the evolving threats posed by cryptocurrency corruption through strategic legislative and technological solutions.

In September 2021, Chinese authorities declared all transactions with Bitcoin and other cryptocurrencies illegal and imposed a complete ban on them. At the same time, the Chinese authorities are actively developing the digital yuan.

China has been testing the digital yuan for three years. The tests occurred in Shenzhen, Suzhou, Xiong’an, Chengdu, Shanghai, Hainan, Changsha, Xi’an, Qingdao, Dalian and the Winter Olympics area. These cities will continue to use the tool.

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