China Clarifies Taxation on Digital Currency Transactions
An article published by the Shanghai Municipal Tax Service has raised speculation about a potential easing of China’s crypto ban regulations. The article, titled “Common Misunderstandings Regarding Personal Income Tax on Business Income and Categorised Income,” explained taxes on digital currency transactions in China.
The guide gained significant attention after being posted on WeChat, sparking hope within the Chinese crypto community for a review of the strict crypto ban. However, legal experts have clarified that the tax guide does not indicate any potential change in China’s crypto ban policy.
The Shanghai tax service later deleted the controversial guide from its public WeChat account. Despite recent announcements about Web3 development plans and support for Hong Kong as a hub for virtual assets, Chinese authorities remain committed to cracking down on cryptocurrency-related activities.
China’s Crackdown on Crypto Continues
In 2017, China implemented a strict crypto ban policy and has since intensified its crackdown on all cryptocurrency-related activities. This crackdown is driven by concerns over financial stability risks. Recently, Chinese authorities targeted the use of cryptocurrencies in illegal foreign exchange trading, particularly cases involving Tether (USDT) as an intermediary for trading yuan with other currencies.
Hot Take: No Change in China’s Crypto Ban Policy
The Shanghai Municipal Tax Service’s tax guide on digital currency transactions has sparked speculation about a potential easing of China’s crypto ban. However, legal experts have clarified that this guide does not indicate any change in China’s crypto ban policy. Despite hopes for a review of the strict regulations, Chinese authorities remain committed to cracking down on cryptocurrency-related activities to ensure financial stability. The recent crackdown on the use of cryptocurrencies in illegal foreign exchange trading further emphasizes this stance. Therefore, it is unlikely that China will relax its crypto ban in the near future.
By
By
By
By
By