Local Tax Authorities in China have begun imposing a 20% personal income tax on the investment profits of individual crypto investors and Bitcoin miners, China currently has strict regulations on illegal financial activities. Within the current legal framework, China does not prohibit individuals from holding Bitcoin and cryptocurrencies under the ‘Invalid Civil Act’.
Governments around the world are growing concerned by the amount of power it takes to mine Crypto which prompted an initial ban from China, and Russia banning it outrightly on concerns bordering on Climate Change and Energy Consumption used for Cryptocurrency mining.
Experts argue that the need to tax cryptocurrencies may have the potential to force the legalization of the crypto industry in China.
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Interestingly, China has revealed a CBDC (digital currency) with expiration dates that force people to spend instead of saving. Don’t you think that sounds like the exact opposite of freedom? The solution is in Crypto. CBDC aren’t cryptos, they are just dystopian in my opinion— nothing decentralized about it.
Huw Van Steenis, Vice Chair at Oliver Wyne noted that;
The rage for central bank digital currency is waning. The live pilots in the Bahamas and China are yet to be successful and the fear of missing out on crypto has collapsed. Most central bankers at Davos are sticking to desk exercises only.
HE, Justin Sun, Tron Blockchain Founder and Huobi Global Advisor noted on microblogging platform Twitter that 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.
The tax on crypto transactions is a clear indication that the Chinese government views cryptocurrencies as a legitimate form of wealth and wants to ensure its proper taxation. The tax policy is expected to boost the adoption of cryptocurrencies in the country, as it provides a clear regulatory framework for individuals and businesses.
With the increasing use of cryptos in China, it is expected that the government will further regulate the crypto industry, providing further legitimacy and stability. The crypto tax in China is a positive development for global cryptocurrency market and may set a precedent for other countries to follow.
Floki Inu stated that;
We believe that China (and Asia) will contribute greatly to the next phase of explosion in crypto adoption, and we have some special developments for our Chinese Vikings.
More details will be revealed in the Floki roadmap which will be released SOON.
In an interesting perk, Little Red Book, (XiaohongShu), the Chinese version of Instagram integrates Conflux Network as permissionless blockchain allowing users to showcase NFTs minted on Conflux on their profile page in the digital collection section called ‘R-Space’.
The platform has more than 200 million active monthly users and this integration brings NFTs a step closer to mass adoption, where people are actively using Web3 technology on a daily basis within a Web2 system.
Large internet players in China have initiated efforts embracing Web3 transition. Conflux Network is starting to become the major bridge connecting the two worlds and take the leadership role to expand Web3 technologies into traditional Web2 industries, Ming WU— CTO at Conflux.
Yes, as US continues to battle China, everyone must pay attention on Chinese asset classes:
The U.S. has stopped providing American suppliers licenses to export to Huawei, with the idea of potentially cutting the Chinese telecom giant’s access to U.S. tech altogether, various outlets report, citing anonymous sources. The proposed move would involve all U.S. suppliers, including Intel and Qualcomm, which Bloomberg considers a “hardening of stance” compared with the previous administration. The U.S. has long considered Huawei a national security threat, and the Commerce Department added the firm to its Entity Listin 2019. Huawei has denied that its products pose a national security risk. China is “deeply concerned” about the escalation, a foreign ministry spokesperson says.