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Justin Sun is a 32-year-old crypto enthusiast who founded TRON, a leading blockchain DAO ecosystem. He is also a global advisor of Huobi, an international cryptocurrency exchange.
Justin posted a long Twitter thread stating his beliefs that China will soon loosen restrictions on cryptocurrencies that help the nation to reestablish its crypto market.
The TRON founder wrote, “China has taken a big step towards cryptocurrency regulation with the implementation of a tax on crypto transactions,” he added, “This signals the country’s increasing embrace of cryptocurrencies.”
In his report, a Chinese technology journalist Colin Wu noted that “Chinese authorities had been conducting an investigation into the revenue of crypto whales to tax their income.” Colin underlined that an anonymous whale told him that “since the beginning of 2022, a local tax department asked for an audit of its personal income tax. There are many people and a detailed list of the whales that have been inspected.”
Colin noted that the auditing process of giant crypto investors is under process. The authorities are planning to implement the basic Chinese income tax rate for earning “ The tax rate of property transfer income in personal income tax is 20% of personal profit/income; in the above specific cases, it should be 20% of the income from the fund.”
Justin believes that “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.”
Justin replied to Wu Blockchain on the same thread noting that “Currently HuobiGlobal is based in Seychelles and operates in Caribbeans,” “HuobiGlobal doesn’t share any client information to tax authorities unless it follows international judicial assistance procedure.”
By the end of December 2022, Chinese authorities have detained and arrested 63 people accused of laundering $1.7 billion(12 billion yuan) in cryptocurrency.
Recently the Chinese central bank collaborated with WeChat and Alipay to boost the adoption of its e-CNY central bank digital currency.
The e-CNY app was accessible to the public in a pilot phase in a few cities. A red packet feature was introduced toward the end of 2022. This feature enables users to give their friends cash (as gifts) in red envelopes on special occasions or festivals.
As per reports, in Q2 2020, Alipay and WeChat had about 55.6% and 38.8% of the third-party mobile payment market share, respectively. Alipay’s total monthly users of Alipay in 2020 were around 1.2 billion, while WeChat Pay users surpassed one billion in 2018.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
