China calls for tougher crackdown on crypto bribes, corruption

China's Communist Party has called for stricter action against corruption involving cryptocurrencies, blockchain technology and cross-border financial transfers under a resolution adopted by its Central Committee on October 29.

Summary

• China's Communist Party has called for tougher action against corruption involving virtual currencies, blockchain and cross-border capital.
• The October 29 resolution targets officials who conceal bribes, misuse public power or move illicit assets through intermediaries.
• The document calls for stronger international cooperation, investigations into overseas corruption and recovery of stolen assets.
• The resolution does not introduce a new cryptocurrency trading ban or specifically name USDT, OTC desks or offshore exchanges.
• China's existing restrictions already cover cryptocurrency trading services, stablecoins and unauthorized cross-border financial activities.

According to the official resolution, published by Xinhua on November 1, the party wants investigators to pursue officials using digital assets and concealed financial arrangements to receive bribes or move illicit wealth. The document places virtual currencies alongside internet-based transactions, cross-border capital and blockchain as channels requiring stronger anti-corruption enforcement.

China's Communist Party Calls for Crackdown on Corruption Using Crypto and Blockchain

China's Communist Party called for resolutely combating corruption committed via the internet, virtual currency, cross-border capital and blockchain, according to a resolution adopted at the... pic.twitter.com/EhfmEh5p7S --- Wu Blockchain (@WuBlockchain) November 1, 2026

Meanwhile, the directive forms part of a larger effort to tighten discipline among party officials. It does not announce new restrictions on ordinary cryptocurrency trading, which mainland Chinese authorities already prohibit under existing financial regulations.

China targets cryptocurrency use in bribery and corruption

The resolution emerged from the Fifth Plenary Session of the 20th Communist Party Central Committee, held in Beijing from October 26 to 29.

Under Section VII, titled Taking Firm and Integrated Action against Corruption, the party calls for investigations into misconduct involving officials, businesspeople and intermediaries who help conceal illegal payments.

Among the activities identified are delayed rewards for abusing public office, assets secretly controlled through third parties and arrangements involving agents who disguise illicit transactions as legitimate business.

The document specifically calls for combating corruption conducted through virtual currencies and blockchain, extending its attention to financial methods that can move assets without relying entirely on conventional banking channels.

Officials are instructed to investigate both the people receiving bribes and those offering them. The resolution places particular attention on senior officials, their family members and associates, as well as younger officials accused of abusing their positions.

The party has directed investigators to examine cases involving government-business collusion, misuse of public funds and individuals who seek financial rewards after leaving office.

China calls for stronger investigations into cross-border corruption

Beyond domestic bribery, the resolution calls for closer cooperation with overseas authorities to pursue fugitives and recover assets transferred outside China.

The party wants stronger investigations into cross-border corruption, including arrangements used to conceal the ownership of assets or move criminal proceeds between jurisdictions.

This follows earlier efforts by Chinese financial regulators to identify money laundering linked to cryptocurrency transactions.

In June, crypto.news reported on China's anti-money laundering campaign, which identified virtual currencies, underground banking networks and overseas transfers among enforcement priorities.

The People's Bank of China said authorities had expanded investigations into professional laundering organizations and criminal networks using unconventional payment arrangements.

Chinese regulators have previously warned that some digital asset transactions can complicate customer identification and the tracing of money transferred across borders.

The latest party resolution does not identify particular cryptocurrency exchanges, stablecoins or transaction methods for additional restrictions.

Although USDT can be used in cross-border transfers, the text does not specifically name Tether, offshore trading venues or over-the-counter cryptocurrency dealers.

China's existing crypto restrictions remain in force

China has maintained strict limits on cryptocurrency trading and related financial services for several years, with regulators reinforcing those restrictions in February 2026.

The People's Bank of China and seven other government departments issued updated regulations covering cryptocurrency transactions, unauthorized token issuance and certain activities involving tokenized real-world assets.

Under those rules, Bitcoin, Ethereum and stablecoins such as USDT do not have the same legal status as China's sovereign currency.

Authorities prohibit businesses from providing unauthorized cryptocurrency trading services to mainland customers, including certain services offered by overseas companies.

The February regulations introduced further restrictions on unapproved offshore renminbi-pegged stablecoins.

Earlier coverage of the updated rules detailed how regulators extended existing controls to tokenized assets and offshore issuance arrangements.

The October 29 resolution addresses a different issue: the use of financial technology to conceal corruption involving public officials.

It contains no new effective date for cryptocurrency trading restrictions and does not announce penalties directed specifically at USDT transactions.

Crypto bribery cases draw attention from Chinese investigators

Chinese investigators have already pursued cases involving officials accused of receiving cryptocurrency payments in exchange for government assistance.

In January 2026, state broadcaster CCTV examined the case of Yao Qian, a former official at the China Securities Regulatory Commission who previously led the central bank's digital currency research institute.

According to reporting by Yicai Global, investigators found that Yao received 2,000 ETH from a businessman seeking assistance with a cryptocurrency fundraising project.

The report said investigators traced the Ethereum transfers and identified subsequent transactions involving cryptocurrency exchanges and bank accounts controlled through other identities.

Separately, China's Supreme People's Court has been studying how judges should handle disputes involving virtual currencies and cross-border financial activity.

In May, judicial officials outlined plans to examine legal standards for emerging cryptocurrency-related cases.

The October resolution instructs disciplinary authorities to develop digital supervision systems and big-data platforms for monitoring the exercise of public power.

It also calls for stronger coordination between disciplinary agencies and other government departments, alongside continued investigations into corrupt officials' family members, associates and intermediaries.