Will China legalize crypto in its efforts to tax?

01/31/2023

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Chinese journalist Colin Wu reported that local tax authorities in China have begun to levy a 20% income tax on the investment profits of individual crypto investors and bitcoin miners.

Under the current legislation, China does not prohibit individuals from owning bitcoin and cryptocurrencies in accordance with an invalid civil law. But any activity regarding virtual currencies is still illegal. Moreover, the fight against cryptocurrencies and mining creates many problems for taxation. According to experts, the need to tax any digital currency could potentially lead to its legalization within the country.

Nevertheless, China does not give up trying to gain more control over the crypto space and retains the desire to provide this rapidly developing financial environment with an official tax system.

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