The People’s Republic of China has been very hostile towards the crypto market in the past decade ranging from the miners’ ban to the crypto trading ban. However, Justin Sun – the Permanent Representative of Grenada to the WTO and the founder of Tron Foundation – has insisted that crypto adoption in China is imminent with the recent implementation of transactions’ tax. Notably, China has implemented a 20 percent personal income tax on all crypto profits.
According to Sun, China’s global influence on other worldwide economies may push the to move in a similar direction in future.
“The crypto tax in China is a positive development for the global cryptocurrency market and may set a precedent for other countries to follow,” he noted.
He added that the Tron ecosystem and Huobi crypto exchange have a strong focus on innovation and have been instrumental in driving the growth and development of blockchain technology in China
Bigger Picture of China Crypto Adoption
The global crypto market is expected to significantly benefit from China providing clear regulations amid a time when accountability is needed to ensure mainstream adoption. Furthermore, the FTX and Alameda saga, which has been described as the fastest big corporate failure in American history, triggered a global crypto regulatory need.
China has been easing Covid related restrictions following a string of lockdowns in major cities. As the country rejoins the world’s supply chain, the use of cryptocurrency is expected to widen the country’s economic outlook. Furthermore, the country has tested and rolled out its CBDC, digital yuan, in the past few years.
More crypto regulations in China will help onboard mainstream organizations like traditional banks in the country that needs digital assets exposure. Furthermore, the high inflation has caused traditional organizations to adopt Bitcoin and digital assets as hedge factors.