Is China Planning to Remove its Crypto Ban?

Justin Sun thinks that China is removing its crypto ban and taking some steps toward crypto legitimization. This thought came after China started taxing crypto transactions. According to him, this move indicates that the Chinese government regards cryptocurrency as a legitimate source of wealth.

Is China Planning to Remove its Crypto Ban?
Is China Planning to Remove its Crypto Ban?

China has Implemented a New Crypto Transaction Tax Policy

On January 30, 2022, Tron Founder stated that China was taking serious measures to implement crypto regulations through taxation on digital asset transactions. According to his Twitter thread, he thinks that China might remove the crypto ban and re-embrace cryptocurrencies.

China has consistently prohibited the use of cryptocurrencies within its borders. However, the tax policy reveals that the country must accept digital assets in order to implement tax policies. Meanwhile, the Chinese government appears to regard cryptos as a “legitimate form of wealth,” necessitating taxation. Currently, there is a crypto ban including mining and transactions. However, the demand for digital assets in China is rising dramatically.

Furthermore, Justin thinks that the crypto tac policy in China is a positive development for the whole crypto industry. In fact, it may become a guideline for other countries to follow. Previously, China has one of the world’s strongest crypto markets. From June 2021 to July 2022, there were over $220 billion in transactions. Now, we shall see where the tax policy brings us.

Closing Thoughts

China is undeniably a powerhouse for wealth. If China reverses its crypto ban, the industry will most probably enter another bull market. Furthermore, bitcoin halving is probably happening around the corner. Market experts are expecting a date around mid-2024. Therefore, now might be the best time for you to begin your crypto journey!

In the meantime, check out our MEXC trading page and find out what we have to offer! You can learn more about crypto industry news and interesting articles to get you up to speed with the crypto world. Happy trading!

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