China’s ruling Communist Party has called for stronger action against corruption involving virtual currencies and blockchain technology, adding digital financial tools to its latest anti-corruption enforcement priorities.
The appeal was included in a decision adopted by the Party’s Central Committee on October 29 during the Fifth Plenary Session of the 20th Central Committee. China’s state news agency Xinhua published the complete document on November 1. The announcement outlines the Party’s commitment to “full and rigorous Party self-governance,” emphasizing tighter internal controls and greater accountability among its officials.
In the section addressing corruption, the document specifically urges authorities to take firm action against misconduct involving digital technologies. According to an English translation, the directive calls for efforts to “resolutely crack down on corruption carried out through the internet, virtual currency, cross-border funds, blockchain and the like.”
The statement does not explicitly refer to Bitcoin or introduce new restrictions on cryptocurrency exchanges, mining operations, or stablecoins.
The document also highlights the need to uncover increasingly sophisticated forms of hidden corruption. These include expected financial benefits, prearranged proxy ownership, intermediaries described as “white gloves,” and the revolving door between government positions and commercial businesses.
China Strengthens Its Existing Anti-Crypto Position
China’s latest directive comes against the backdrop of more than a decade of strict cryptocurrency restrictions. In December 2013, the People’s Bank of China (PBOC) and other regulatory authorities prohibited banks from facilitating Bitcoin transactions.
The government expanded its crackdown in September 2017 by banning initial coin offerings (ICOs) and cryptocurrency exchanges serving mainland Chinese customers. In September 2021, the central bank and several other agencies went further, declaring all cryptocurrency transactions illegal and intensifying enforcement against mining operations.
More recently, a notice issued on February 6 under the leadership of the central bank reaffirmed that virtual currency-related business activities conducted on the mainland constitute illegal financial activity.
The regulatory announcement also prohibited offshore stablecoins pegged to the Chinese yuan and unauthorized tokenization of real-world assets, as outlined in CryptoSlate’s summary of the notice.
The latest decision signals that Chinese authorities remain concerned about the potential use of cryptocurrencies and blockchain networks to conceal financial misconduct and move illicit funds across borders. However, it does not announce an entirely new cryptocurrency ban. Instead, the Party is incorporating digital assets into its broader efforts to identify hidden corruption and strengthen financial oversight.
