An official Chinese tax newspaper has called on the government to impose taxes on cryptocurrencies, despite the recent show of hostility towards the industry by the government. The article, which was attributed to the state tax agency, further called for clarity regarding Bitcoin property declaration, liquidations, mergers and acquisitions, and more to avoid tax evasion.
China has been unequivocal in its hard stance against crypto.
China has been unequivocal in its hard stance against the crypto industry. It has banned ICOs, chased off exchanges, curbed banking access for players in the industry, and booted out miners over the past few years. However, despite clearly not leaving any room for digital currencies, the China State Tax Administration believes that the government should define taxation policies for the sector. The Asian country banned BTC years ago and has continued to reiterate this stand. In an article on China Tax News, the administration’s Loudi Taxation Bureau called on the government to go even further and legally define other related activities.
The bureau wants more regulations around cryptocurrencies.
“At the same time, China should improve the relevant property declaration and registration mechanism and carry out real-name registration and dynamic tracking of users who hold a large amount of virtual currency,” the bureau stated. It also wants the Chinese government to define policies related to reorganizations, fines and confiscations, liquidation, bankruptcy, mergers and acquisitions, and more “to clarify the handling of virtual currencies to avoid the loss of national taxes.”. While the government has claimed that the clampdown is to protect investors, many have said that Xi Jinping’s administration is anti-Bitcoin as it represents the ultimate freedom in a state governed by a communist regime.