• People’s Republic of China has been hostile to the crypto market in the past decade
• Justin Sun, the Permanent Representative of Grenada to the WTO, has predicted that crypto adoption in China is imminent with the recent implementation of a 20% personal income tax on all crypto profits
• The implementation of a tax on crypto transactions signals China’s increasing embrace of cryptocurrencies, which is expected to benefit the global crypto market
The People’s Republic of China has been notoriously hostile towards the crypto market in the past decade, ranging from the miners‘ ban to the crypto trading ban. However, Justin Sun – the Permanent Representative of Grenada to the WTO and the founder of Tron Foundation – has recently predicted that crypto adoption in China is imminent.
This prediction came after the implementation of a personal income tax of 20% on all crypto profits. This tax is expected to provide clear regulations for the global crypto market, when accountability is needed more than ever. Sun commented that “the crypto tax in China is a positive development for the global cryptocurrency market and may set a precedent for other countries to follow.” He added that the Tron ecosystem and Huobi crypto exchange have been instrumental in driving the growth and development of blockchain technology in China.
The Chinese government is also making moves to support the crypto industry, such as the recent authorization of five crypto exchanges by the Cyberspace Administration of China. Furthermore, the government is exploring the potential of a new digital yuan, which is expected to be backed by blockchain technology and could potentially be used to settle international payments.
In addition, China is making efforts to strengthen the crypto market by creating a regulatory sandbox for digital currency projects. This sandbox will enable companies to receive support and guidance from the Chinese government in developing their products and services. These efforts will help to create a more secure and transparent market for digital assets.
Ultimately, the recent developments in the Chinese crypto market are highly encouraging and suggest that the government is becoming more open to the idea of crypto adoption. This could have a positive effect on the global crypto market and could potentially lead to increased adoption and innovation in the industry.