Chinese Official Newspaper Asks Government to Impose Taxes on Cryptos

China Tax News, an official Chinese tax newspaper, has called the Chinese government to impose taxes on Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term despite the ongoing nationwide ban on digital assets. However, according to Colin Wu, a Chinese journalist who first hinted at the news, if that scenario materializes, it would give cryptos indirect legalization despite the crackdown.

“China’s tax official newspaper called for a tax on crypto and said that the Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term’s taxation scale was very large. But, since the PBOC defines all of the crypto activities as illegal activities, taxation seems to indirectly recognize their legalization,” Wu said in a tweet. The original text published in the newspaper put in context the cryptocurrency market and its trading volume.

The author of the article notes that while the overall tax scale of the crypto exchange industry is considerable, further clarification is needed as to how other related industries are taxed. “At the same time, China should improve the relevant property declaration and registration mechanism and carry out real-name registration and dynamic tracking of users who hold a large amount of virtual currency. Furthermore, in judicial areas such as fines and confiscations, reorganization, mergers and acquisitions, bankruptcy liquidation, etc., it is necessary to clarify the handling of virtual currencies to avoid the loss of national taxes,” China Tax News commented.

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The note on the newspaper seems to be authored by the Loudi Taxation Bureau of the State Tax Administration without specifying the name of who issued that exact opinion on the matter.

In September, the People’s Bank of China (PBoC) stated that all companies offering token issuance, trading, derivatives and order matching for digital assets are prohibited. The central bank argued that it seeks to ‘eliminate’ hype and remove speculation to protect the Chinese population from the crypto market. The ‘Notice on Further Preventing and Disposing of the Risk of Hype in Virtual Currency Trading’ highlighted that staff of overseas crypto exchanges operating in the country, including those who work for customer support departments, will be subject to investigations.