China Communist Party calls for tougher action on crypto corruption

China’s Communist Party Central Committee adopted a resolution on October 29, 2026, calling for stricter action against corruption using virtual currencies, blockchain, internet transactions, and cross-border capital. Published by Xinhua News Agency on November 1, 2026, the directive targets concealed bribery, proxy holdings, and illicit transfers by officials and their family members. While extending disciplinary focus to digital assets, the resolution maintains existing financial bans without imposing new trading restrictions.

Focus of anti-corruption resolution

• ▪China's Communist Party adopted a resolution, calling for tougher action against corruption involving virtual currencies, blockchain, internet transactions, and cross-border capital
• ▪China's Communist Party Central Committee's resolution published by Xinhua News Agency on November 1, 2026, focuses anti-corruption enforcement on intertwined political and economic issues, including capital infiltrating the political sphere

Directives targeting official misconduct

• ▪China's Communist Party Central Committee's resolution urges regular oversight of businesses operated by officials' spouses and children, and instructs authorities to investigate officials whose family assets and expenditures exceed normal income
• ▪China's Communist Party Central Committee's resolution directs investigators to target concealed graft including delayed rewards after leaving office, agreed proxy holdings, third-party intermediaries known as white gloves, and government-business revolving doors

Yao Qian cryptocurrency case

• ▪Chinese state broadcaster CCTV reported in January 2026 that former China Securities Regulatory Commission official Yao Qian received 2,000 ETH from a businessman to assist with a cryptocurrency fundraising project
• ▪Chinese investigators traced the 2,000 ETH received by Yao Qian to subsequent transactions involving cryptocurrency exchanges and bank accounts controlled through false identities

February 2026 cryptocurrency regulations

• ▪The People's Bank of China and seven other departments issued updated regulations in February 2026 reinforcing prohibitions on mainland cryptocurrency trading services, unauthorized token issuances, and offshore renminbi-pegged stablecoins
• ▪China's February 2026 updated regulations established that Bitcoin, Ethereum, and stablecoins such as USDT do not share the same legal status as sovereign currency