China Expands Anti-Corruption Rules to Cover Digital Assets
In a significant move to strengthen governance, China's General Office of the Communist Party Central Committee and the State Council have jointly issued the "Code of Conduct for Integrity of Leaders in State-Owned Enterprises." This updated regulation sets forth stricter boundaries for the professional conduct of executives in the state sector.
Key Prohibition: Virtual Currency Explicitly Banned
A pivotal aspect of the new code is its explicit prohibition against SOE leaders accepting or soliciting improper benefits. Significantly, the list of forbidden items, which traditionally includes gifts, cash, and securities, now formally incorporates "virtual currency." This inclusion demonstrates regulators' proactive stance against potential corruption channels involving emerging digital assets.
The scope of the restriction applies to benefits from:
- Affiliated enterprises of the SOE;
- Companies having business relationships with the SOE or its invested entities;
- Parties under the management or service purview of the executive.
Full-Cycle Supervision: Rules Extend Beyond Tenure
The regulation adopts a comprehensive oversight approach by also prohibiting executives from pre-arranging to receive benefits after their resignation or retirement. This measure aims to close loopholes for deferred corruption, preventing the misuse of lingering influence post-tenure.
The issuance of this revised code represents a crucial step in refining the supervisory framework for state-owned enterprises and deepening anti-corruption efforts. By addressing modern forms of value transfer, it provides a contemporary legal foundation for ensuring integrity within China's state sector.