By Shelly Melancon (Switzerland)
The central committee of China’s Communist Party (CP) has expelled one of its top members following a discovery that he has been engaging in crypto-related activities despite the government’s ban on such activities. The offender, Xiao Yi, who hailed from the Jiangxi province and was an ex-VP of China’s People Political Consultative Forum, was also accused of abusing the authority of his office.
Party Releases Statement Concerning The Issue
A statement from the party read thus: ” Yi breached the new rules by using his power to support crypto mining firms which is against the ideals of our great party.” Also, Chinese authorities alleged that Yi further used his position for other illegal purposes such as fund-raising for unexecuted projects and collecting bribes.
Consequently, Yi has been dispossessed of his position while the government has seized his physical properties and sources of income pending the result of a criminal investigation against him.
Ban Has Caused China’s Thriving Crypto Community To Wane
Other crypto-friendly countries have benefitted massively from China’s ban on crypto-related activities. Many of those exiting China has been moving to these countries to continue their operations. One of the largest crypto exchanges formerly head-quartered in China announced that it had obtained an operating license in Gibraltar.
As widely reported, Gibraltar’s financial watchdog approved that Huobi can now start running its spot-trading operations in their country. Speaking on the development, Huobi’s CEO, Jun Du, revealed that “many players in the crypto space desire regulated growth… Each business entity knows the importance of maximizing the advantage of the trend.”
Wealthy Chinese Investors Use Crypto To Cover Up Multi-Million-Dollar Real Estate Deals In Japan
The Ashi Shimbun (a media outlet in Japan) has revealed that three Chinese residents invested almost $240m into Tokyo’s real estate market using crypto in the past three years. During this period which dated back to March 2019, the offenders used a tourist photo studio to font for their illegal activities. Upon further investigation, the trio was found to act on behalf of some wealthy Chinese clients looking to invest in Japan’s real estate market.
Before they were nabbed, the Chinese clients were sending digital currencies to the “tourist photo studio,” which was changed to fiat currency. Many wealthy Chinese panicked and started moving their wealth overseas without letting the authorities know following the wealth redistribution plan announced by China president xi Jinping.
But the scheme crashed after-tax officials observed the entrance and exits of enormous cash from various business bank accounts. Based on Chinese law, no one can transfer over $50K overseas without approval from the president’s office. However, tax experts agree that Japan and China need to work together to combat crypto-related money laundering activities involving both countries.
An ex-tax official for Japan’s federal tax agency, Nobuhiro Tsunoda, reiterated that “this case is proof that both countries’ tax agencies must work together and find the means to track funds movement, identify fraudulent transactions and execute measures to deal with such issues.” Twelve months ago, Japanese tax officials made it mandatory for crypto exchanges to disclose crypto transactions, provided they are above a specific amount.
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