China's Increasing Scrutiny on Bribery via Cryptocurrency: Legal Experts Weigh In
Summary:
China's Legal Daily has underscored the need to curb corruption involving digital payments including cryptocurrency, drawing on discussions from legal scholars at the China Integrity and Legal Research Association. The scholars insisted on stronger measures to combat emerging forms of bribery and called for judicial scrutiny of transactions involving unrecognized digital currencies like Bitcoin. The news comes following recent warnings by state agencies against the illegal use of stablecoin Tether for foreign exchange transactions. Despite the restrictive stance on cryptocurrencies, China continues to utilize blockchain technology for identity verification and other applications, including its advanced central bank digital currency, e-CNY.
The Chinese digital journal, Legal Daily, has recently spotlighted the urgent need to curb bribery through cryptocurrency and other digital payment methods. The article drew from discussions of legal experts during the yearly meeting of the China Integrity and Legal Research Association, where addressing emerging forms of corruption was the primary subject. Legal Daily, an official publication of the Chinese Communist Party (CCP)'s Central Commission for Political and Legal Affairs, quoted Zhao Xuejun, an associate professor at Hebei University's Law School, as saying that bribery is increasingly happening via electronic gift cards and virtual currencies concealed in "cold storage" devices. These can be conveniently transported abroad for cash-in. Zhao emphasized that the CCP is taking a robust stance against corruption.
Mo Hongxian, a professor at Wuhan University Law School, explicitly referenced Bitcoin and noted that the clandestineness and challenging traceability of digital currencies are easily usable for illicit activities. He stated that even though they are unrecognized formally, transactions utilizing such currencies should be brought under judicial scrutiny. The article highlights the need for strengthening rules and regulations to punish emerging forms of bribery. It emphasizes the need for increased oversight in sectors prone to such corruption.
Shortly before this article, the Supreme People's Procuratorate and State Administration of Foreign Exchange had cautioned officials against illegal use of the stablecoin Tether (USDT) for foreign exchange dealings with the yuan. However, China is positively employing blockchain technology for uses like identity verification. Its central bank's digital currency, e-CNY, although in a testing stage, is significantly advanced. As of June 2023, despite being available only in certain locations, transactions worth close to $250 billion have been conducted using the digital yuan in China and in international goods sales.
Published At
1/4/2024 12:35:34 AM
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