China’s Communist Party has issued a directive calling for intensified measures to combat corruption connected to virtual currencies, blockchain technology, and cross-border financial flows. The announcement reflects Beijing’s continuing focus on reinforcing discipline within the Party’s own ranks and its determination to address emerging risks in the digital economy.
Anti-corruption campaign targets new technologies
The decision from the Party’s Central Committee, which was adopted at the Fifth Plenary Session of the 20th Central Committee and published in full by Xinhua on November 1, explicitly mentions virtual currency and blockchain as components of new challenges in fighting corruption. The document emphasizes the necessity to “resolutely crack down on corruption carried out through the internet, virtual currency, cross-border funds, blockchain and the like,” according to an official Chinese-to-English translation.
While the directive highlights virtual currencies and blockchain as potential enablers for illicit activity, it does not specifically reference bitcoin or other cryptocurrencies, nor does it mention trading, mining, or stablecoins. The absence of direct reference to particular digital assets or practices underscores the general nature of the guidance in the broader anti-corruption campaign.
Xinhua’s summary emphasizes the Party’s commitment to uncovering new and concealed forms of corruption, including activities involving virtual currencies, blockchain, and internet transactions, as well as “expected gains, agreed proxy holding,” “white gloves,” and the “revolving door” between official and business circles.
Mini dictionary: Xinhua, China’s official state news agency, often serves as the primary channel for issuing key government announcements and reflecting formal policy positions.
Ongoing restrictions and recent enforcement
China has maintained strict controls on digital assets for over a decade. Its regulatory stance began in December 2013, when the People’s Bank of China, the country’s central bank, along with other top regulators, prohibited banks from processing bitcoin transactions. In September 2017, Chinese authorities extended the clampdown by banning initial coin offerings (ICOs) and restricting crypto exchanges from serving domestic users.
The most decisive action came in September 2021, when the central bank and multiple regulatory agencies declared all cryptocurrency-related transactions illegal and intensified efforts to eliminate crypto mining activity across the country.
| Year | Regulatory Action | Key Focus |
|---|---|---|
| 2013 | Banks barred from bitcoin transactions | Financial institutions |
| 2017 | Banned ICOs, exchanges restricted | Fundraising, trading platforms |
| 2021 | Declared all crypto transactions illegal, mining crackdown | All digital asset activity |
| 2024 | Reaffirmed ban on virtual currency business, offshore stablecoins | Cross-border finance, tokenization |
Earlier this year, authorities reiterated China’s uncompromising stance. On February 6, a central bank-led notification restated that conducting virtual currency business within mainland China constitutes illegal financial activity. This notice also prohibited offshore stablecoins tied to the yuan and the tokenization of real-world assets without government approval, reflecting evolving regulatory priorities as new technologies emerge.
Complex financial misconduct under scrutiny
The Central Committee’s resolution extends beyond digital assets, urging government bodies to pursue other covert and sophisticated forms of financial misconduct. These include malpractices like “white gloves” — indirect corruption through intermediaries — and the “revolving door” phenomenon involving personnel moving between public and private sectors.
Officials have called for further efforts to investigate and dismantle these hidden mechanisms, which are increasingly intertwined with novel technologies such as blockchain and internet-based financial services.
Within the push for “full and rigorous Party self-governance,” the Central Committee stressed the need to address both traditional and emerging schemes that may threaten integrity in China’s political and business environments.
China’s renewed focus on virtual currencies and blockchain in its anti-corruption drive signals that authorities view technological innovation as both an opportunity and a risk, requiring continuous vigilance.
