Official tax newspaper in China calls for imposing taxes on crypto exchanges, even though recently the government deemed all crypto transactions illegal
Chinese journalist and blogger Colin Wu, who covers everything related to the blockchain and crypto industries, tweeted that an official Chinese tax newspaper, China Tax News, is urging the government to tax virtual assets.
However, Wu adds that since all crypto transactions were declared illegal at the end of September, taxing cryptocurrencies would give them indirect legalization.
2017 Chinese cryptocurrency ban
The author of the article is from the Loudi Taxation Bureau of the State Tax Administration. He or she writes that since the crypto market continues to thrive and its total market cap has reached $ 2.6 trillion (with a market cap of $ 1.2 trillion), the risk of losing a chance to tax crypto -coins deserves an in-depth discussion.
After September 2017, when initial coin offerings were banned in China, the government again cracked down on virtual assets in September 2021. This time the government and the central bank (PBOC) declared all crypto transactions illegal. and online crypto trading services.
Taxing crypto exchanges is still possible
After the prohibiting document was issued, many local crypto exchanges chose to relocate to other countries, like Huobi, and some quit the business.
Major crypto trading platforms, such as Binance, have stopped serving clients from mainland China since the provision of crypto trading services in China by foreign platforms also became illegal.
However, the author of the article says that even though it is illegal according to the letter of the law, it is not literally impossible to hold crypto. Thus, according to the author, foreign trade can continue to operate in China but will be taxed in this case. But first you have to create a legal framework for that.
“Bitcoin will not disappear in a short period of time”
The author adds that it is obvious that virtual assets (Bitcoin, Ethereum and other cryptos) will not disappear in a short period of time.
According to current Chinese laws, individuals in China are allowed to hold cryptocurrencies. These transactions can so far be defined as an “invalid civil act” are not banned outright by law.
