TRON team is reportedly jubilant over China’s apparent shift in stance towards the crypto sector. Justin Sun, founder of the blockchain shared a post recently where he cited China loosening its tight grip over crypto. He wrote,
China has taken a big step towards cryptocurrency regulation with the implementation of a tax on crypto transactions. 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.
Sun’s tweet came in response to tech journalist Colin Wu’s report on Jan. 25. In it, Wu revealed that Chinese tax authorities were investigating the nation’s ‘crypto whales’ revenue in order to tax their income.
Wu asserted that he had information from an unnamed whale that a local tax office had been in touch with the latter since early 2022, requesting an audit of its personal income tax. There are numerous individuals and a thorough list of the whales that have undergone inspection.
Wu also revealed that the audit process is still underway and that the tax inspectors are looking to apply the basic Chinese income tax rate to their earnings.
“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.”
This, according to Sun, is an encouraging sign as China has imposed a ban on all kinds of cryptocurrencies since 2021.
TRON DAO has not made any official announcements
The TRON founder also stated that this new approach by tax authorities would boost cryptocurrency adoption in China.
As per him, “it provides a clear regulatory framework for individuals and businesses,” hoping “that the government will further regulate the crypto industry, providing further legitimacy and stability.”
Additionally, Sun emphasized TRON and Huobi’s “significant contributions” to “the growth and development of blockchain technology in China.”
As of now, TRON has not yet made any official announcements about its aspirations for China. However, the fact that it did so in response to China’s cryptocurrency policy shift reflects its desire to venture into a territory known for its anti-crypto stance.
Still, one can treat all of TRON’s potential interests in China within the spectrum of speculation.