An official tax newspaper in China has recently called for a tax on cryptocurrency exchanges, despite the government declaring all cryptocurrency transactions illegal.
Chinese blockchain journalist Colin Wu tweeted that China’s official tax newspaper, China Tax News, has invited the government to impose taxes on digital assets.
However, Wu added that taxing cryptocurrencies would provide indirect legalization, as all cryptocurrencies were declared illegal at the end of September.
The article comes from the State Tax Administration Loudi Tax Office. He says that the crypto market continues to evolve and the total market cap has reached $2.6 trillion, he should not lose the chance to tax cryptocurrencies.
After September 2017, when digital currency offerings were banned in China, the country’s government again put pressure on digital assets. This time, the government and the central bank (PBOC) have declared online services of any cryptocurrency transaction and cryptocurrency trading illegal in the country.
The author of the article says that although the cryptocurrency industry is considered illegal in China, this is not a literary process. Therefore, he says, cryptocurrency exchanges can continue to operate in China, but in this case they will be taxed. For this, a legal framework must first be established.
The author adds that digital assets will not disappear anytime soon.
According to Chinese law, individuals in China are currently allowed to hold cryptocurrencies. Although these transactions are defined as “invalid legal action”, they are not directly prohibited by law.