Ex-Central Bank Digital Currency Head Faces Expulsion Over Crypto Corruption

Yao Qian, a prominent figure in China’s blockchain and digital currency sector, has been expelled from the Communist Party of China and dismissed from his public office.

This follows accusations from the country’s anti-corruption authorities, who claim that Yao abused his regulatory power for personal benefit, particularly in relation to cryptocurrency deals. The charges include corruption, where he allegedly engaged in improper money-for-influence exchanges and favored certain technology service providers for his gain.

The anti-corruption agency’s announcement emphasized that Yao had fabricated his credentials and violated laws while serving in key positions. Though specific amounts have not been disclosed, reports suggest Yao amassed considerable illicit wealth. His case has been forwarded to prosecutors for further investigation.

Yao, born in 1970, was instrumental in developing China’s digital currency landscape. In 2017, he became the first head of the central bank’s digital currency research institute, a position that allowed him to influence China’s digital yuan development. Later, he held a leadership role at the China Securities Regulatory Commission, overseeing technology regulations.

Aside from his regulatory work, Yao was an advocate for blockchain technology. In 2022, he published a book discussing decentralized finance, NFTs, and Web3. He also warned of the potential risks associated with Bitcoin ETFs, in an article published just months before the corruption charges surfaced. This article has now become one of his final public statements.