What happens to China and his crypto approach?
What happens to China and his crypto approach?
The industry -wide core melt of last year has followed Asian companies that carefully plan their relaxation. China was once a stronghold for crypto mining and trading. Even after the announcement of a blanket ban on all activities in the area of digital assets more than a year ago, there is reason to assume that the country could celebrate a comeback in this area.
also tron founder Justin Sun, who has played up the industry in the past said China could turn to the investment class, especially after the introduction of a tax on crypto transactions, which he sees as "a big step towards cryptocurrency regulation".
taxation of crypto
Some Chinese authorities have started to raise an income tax of 20 % on the investment gain in individual crypto investors and Bitcoin miners. When trying to control the crypto tax, many believe that China could actually legalize the asset class.
crypto -related activities are illegal, which hinders tax policy. Similar discussions have taken place in the past. Months after the ban, a subsidiary of the state tax authority in China published an article with the focus "Avoidance of tax risks through virtual currencies".
Actually the Chinese blockchain reporter Colin Wu provided the Chinese tax authorities in January 2022 before it was taken over by SUN.
In addition to the FTX debacle, the political decision-makers in the East Asian country have loudly expressed concerns such as the wasteful energy footprint of the crypto mining and the dangers of speculation with volatile assets. The crypto activity has largely slowed down, but is far from being dead, which indicates that the trade restrictions imposed by Beijing were largely avoided by determined users.chainalysis' showed that China advanced to the 10th place in the Global Crypto Adoption Index in the Global Crypto Adoption of Adoption after it had determined a strong use of centralized services. This proved that the government's step "was either ineffective or was only easily enforced".
The attitude of Hong Kong and Singapore for cryptor regulation
China's crypto ban caused fears about a domino effect. But Hong Kong and Singapore go their own way.
Hong Kong welcomed crypto companies to maintain his status as an international financial center with regulatory clarity. Virtual asset service providers who want to work in the region must undergo a licensing process that corresponds to the AML guidelines and the investor protection laws.
The Securities and Futures Commission (SFC) from Hong Kong will shortly publish a list of crypto-assets that are open to private mandates to limit private investors to some cryptos on the white list.
In the meantime, the regulations in Singapore will be more strict for existing market participants, especially after the top -class implosion of companies registered in the city state such as Three Arrows Capital (3AC) and Terraform Labs.
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