Colin Wu reported that miners, investors, and cryptocurrency whales have been audited by local tax authorities in China since the beginning of 2022 and are still waiting for results.
According to Finbold, this development refers to the imposition of a 20% personal income tax on investment profits or individual crypto investors and many Bitcoin (BTC) miners, after some local exchanges provided tax authorities with detailed information about some of the whales' transactions.
While this also means that China has finally accepted the legal status of cryptocurrencies, the situation seems more complicated as tax and financial authorities have different views on the matter.
On the subject, Justin Sun, the founder of the Tron ecosystem, tweeted:
“China has taken a big step towards cryptocurrency regulation with the implementation of a tax on crypto transactions. This signals the country's increasing embrace of cryptocurrencies. The tax on crypto transactions is a clear indication that the Chinese government views cryptocurrencies as a legitimate form of wealth and wants to ensure its proper taxation. The tax policy is expected to boost the adoption of cryptocurrencies in the country, as it provides a clear regulatory framework for individuals and businesses. With the increasing use of cryptocurrencies in China, it is expected that the government will further regulate the crypto industry, providing further legitimacy and stability. The crypto tax in China is a positive development for the global cryptocurrency market and may set a precedent for other countries to follow. Both TRON and Huobi have a strong focus on innovation and have been instrumental in driving the growth and development of blockchain technology in China.”
