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China's Legal Daily has featured a call to combat bribery facilitated by cryptocurrency and other electronic payment methods.
Legal scholars engaged in discussions at the annual China Integrity and Legal Research Association meeting emphasized the need to address emerging forms of corruption.
Hidden Channels: Cryptocurrency and Bribery
The Jan. 1 issue of Legal Daily, a publication by the Chinese Communist Party (CCP) Central Commission for Political and Legal Affairs, highlighted concerns raised during the meeting.
According to Coin Telegraph, Associate Professor Zhao Xuejun from Hebei University Law School noted that virtual currency and electronic gift cards have evolved into "hidden channels" for bribery. He pointed out that these forms of payment, which are stored in "cold storage" devices, can be easily transported abroad for withdrawal.
Professor Mo Hongxian from Wuhan University Law School explicitly mentioned Bitcoin and emphasized that virtual currencies' anonymity and challenging traceability make it easier to transact illegal activities.
Despite the absence of official recognition in China, transactions involving virtual currencies demand judicial attention, according to Professor Hongxian.
This development follows a recent warning issued by two state agencies, the Supreme People's Procuratorate and the State Administration of Foreign Exchange.
Cryptocurrency Challenges and CCP's Anti-Corruption Efforts
They cautioned officials against using stablecoin Tether as an intermediary currency in yuan-related foreign exchange transactions, deeming such actions illegal.
According to The Daily Hodl, while China maintains a ban on cryptocurrencies, it actively explores blockchain technology for identity verification. Additionally, its central bank digital currency, e-CNY, still in the pilot stage, has seen significant development.
Despite limited geographic distribution, the digital yuan recorded transactions amounting to nearly $250 billion in China as of June 2023, with international use observed in commodities sales.
As the CCP intensifies its fight against corruption, the focus on addressing cryptocurrency's role reflects the evolving landscape of financial crimes in the digital age.
Photo: Alejandro Luengo/Unsplash
