China’s Communist Party orders a tougher crackdown on crypto bribes, offshore money and blockchain-linked corruption

China’s Communist Party urged tougher action on corruption involving cryptocurrency¹. The party’s Central Committee adopted a resolution pledging to combat corruption involving cryptocurrencies, blockchain and cross-border capital⁶. China will crack down on corruption involving cryptocurrency, cross-border funds and blockchain technology, according to the fifth plenum report².

The party has ordered investigators to chase crypto bribes and offshore money³. It is also tightening its grip on tech firms³, and has pledged to reach deeper into the tech and digital platform sectors². The call for tougher action covers corruption involving cryptocurrencies, blockchain and cross-border funds⁵. The resolution was adopted by the party’s Central Committee, which named crypto, blockchain and cross-border capital together as targets⁶.

How it fits the plenum

The measures came out of the party’s fifth plenum, the political meeting held in Beijing this week^2,8. President Xi Jinping said strict party governance has a positive impact and does not stifle growth⁷. Former generals of the People’s Liberation Army have been expelled from the party⁷.

One analyst said the focus of the fifth plenum suggested that Xi is “unlikely to take that risk” for the time being, in remarks that also touched on the South China Sea and disputes with the US⁸.

Accounts differ on how far the resolution goes: one described it as reshaping cryptocurrency regulations, targeting corruption in digital assets and enhancing compliance⁴, while others describe a pledge to combat corruption and a call for tougher enforcement^5,6.

Why it matters to investors

The resolution moves digital assets and cross-border flows into the centre of the party’s anti-corruption work^2,6. The resolution pairs cryptocurrency with offshore money and cross-border capital as targets^3,6.

A pledge to reach deeper into tech and digital platform companies, and to tighten the party’s grip on tech firms, bears on Chinese technology groups and their investors^2,3. Xi’s statement that strict governance does not stifle growth is the party’s own position on that trade-off⁷.

What to watch: how investigators apply the new focus on crypto bribes and offshore money, and whether regulators follow with new rules for digital assets^3,4. The party’s next steps on tech platforms will show how far the pledge to reach deeper goes in practice². Any move by regulators would also show how the pledge on blockchain technology is applied^2,6.