China will declare crypto a ‘form of wealth’: Tron founder

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China is one of the most crypto- and Bitcoin-unfriendly countries on earth. In 2017, the People’s Bank of China (PBOC) banned the operation of stock exchanges in China. In May 2021, Chinese authorities ordered a ban on Bitcoin mining. At the end of September 2021, the Chinese central bank banned all crypto transactions.

Nonetheless, controversial Tron founder Justin Sun believes that China may soon be celebrating a return to crypto. In a Twitter thread, Sun wrote that China has taken a big step towards regulating the industry by introducing a transaction tax.

Sun said:

This signals the growing adoption of cryptocurrencies by the country. The transaction tax is a clear indication that the Chinese government views cryptocurrencies as a legitimate form of wealth and wants to ensure its proper taxation.

Is China Preparing For A Crypto Comeback?

In this sense, Sun expects tax policy to encourage the adoption of cryptocurrencies in the country, as it provides a clear regulatory framework for individuals and businesses.

Additionally, the Tron founder claimed that “with the growing use of cryptocurrencies in China, it is expected that the government will further regulate the crypto industry, providing additional legitimacy and stability.” .

Additionally, Sun speculates that the crypto tax in China could be a positive development for the overall global market and a precedent for other countries to follow. “TRON and Huobi have a strong focus on innovation and have been instrumental in the growth and development of blockchain technology in China,” he concluded.

However, not everyone interprets the tax as a signal of a reversal in Chinese policy. Given speculation that private digital assets like Bitcoin have been banned from China due to the introduction of central bank digital currency (CBDC), a policy reversal seems very sudden.

Chinese journalist Collin Wu, however, disagreed with the Tron founder. “Some have taken this to mean that the Chinese government may recognize the legitimacy of cryptocurrencies, but the reality is clearly more complex, with tax authorities and financial authorities having differing views,” Wu said.

Wu first reported on Jan. 25 that some local tax authorities in China had begun imposing a 20% personal income tax on the investment profits of individual investors as well as many Bitcoin miners.

Bitcoin price today

At press time, Bitcoin price was at $23,327 after failing to break above $24,000 yesterday. Today the market enters the most important week of the year so far. As Bitcoinist reported, in addition to Wednesday’s FOMC meeting, there are other key events to come.

Investors should therefore be prepared for a volatile week. For Bitcoin, the resistance zone above $24,000 is currently crucial, while support around $22,700 on the downside should be seen.

Bitcoin price, 1-day chart | Source: BTCUSD on TradingView.com

Featured Image by RABAUZ/Pixabay, Chart by TradingView.com

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