Colin Wu, a Chinese journalist and blogger who covers the blockchain and cryptocurrency industries, has tweeted that an official Chinese tax newspaper, China Tax News, has urged the government to tax virtual assets.
Wu adds, however, that because all crypto transactions were declared illegal at the end of September, taxing cryptocurrencies would provide them with indirect legalization.
It is still possible to tax cryptocurrency exchanges.
Following the issuance of the prohibiting document, many local crypto exchanges, such as Huobi, chose to relocate to other countries, while others chose to exit the business.
Large crypto trading platforms, such as Binance, have stopped serving customers from mainland China, as providing crypto trading services in China by overseas platforms has also become illegal in China.
However, the author of the article claims that, while holding crypto is technically illegal, it is not physically impossible. According to the author, overseas exchanges may continue to operate in China but will be taxed in this case. However, a legal framework must first be established.
“Bitcoin will not vanish in a matter of days.”
The author goes on to say that it is obvious that virtual assets (Bitcoin, Ethereum, and other cryptos) will not vanish overnight.
Individuals in China are permitted to hold cryptocurrencies under current Chinese laws. These transactions, which can be defined as a “invalid civil act,” are not expressly prohibited by law.