As the global adoption of crypto continues, the government of China has now gotten on board with the regulation of digital currencies as it will now allow tax payments in crypto.
assets. This is according to a Tweet shared earlier today by Justin Sun, the founder of Tron, a blockchain ecosystem.
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.
— H.E. Justin Sun🇬🇩🇩🇲🔥₮ (@justinsuntron) January 30, 2023
The initiative comes shortly after reports of the country’s proposed implementation of a tax on cryptocurrency transactions. According to an earlier report by Collin Wu citing several Bitcoin (BTC) miners, the government has now imposed a 20% income tax on investment profits for crypto investors as well as Bitcoin miners.
Source: Exchanges such as Huobi provided client information to Chinese tax authorities. Some big customers have already been asked to collect taxes. https://t.co/f4c9a10FEb
— Wu Blockchain (@WuBlockchain) January 30, 2023
The Chinese cryptocurrency entrepreneur in his Tweet also stressed the steps taken by China to embrace the use of cryptocurrencies. Interestingly, the move by the country may a conviction that the government sees cryptocurrencies as a legalized form of preserving wealth. Also, he posited the government might be ensuring the proper taxation of crypto assets.
China to Further Regulate the Crypto Industry
Additionally, the 33-years old cryptocurrency mogul said that crypto regulation is an ‘absolute necessity’ and that the tax policy would increase the adoption of cryptocurrencies in the nation. This he believes will be bolstered by the clear regulatory framework for individuals and organizations.
With the increasing interest and demand for crypto offerings in the country, Sun is hopeful and expectant that the government will push further to regulate the crypto industry, providing further “stability and reliability”. Likewise, the move by the Chinese regulator will set a pace for other countries to embrace.
Meanwhile last year, the president of the European Central Bank (ECB) Christine Lagarde called for more robust crypto regulation in the European Union (EU) following the implosion of the FTX Derivatives Exchange.
In the same vein, the Central Bank of Russia (CBR) wants to integrate cryptocurrencies and blockchain technology into its local financial economy not minding the stack of prevalent global financial sanctions. Once the apex bank comes up with a working strategy, Russia may be looking at more detailed rules for taxing Non-fungible Tokens (NFTs), and smart contracts including trading digital assets on planned National trading platforms or exchanges it plans to launch.
