Chinese journalist Colin Wu reported Chinese authorities’ efforts to tax cryptocurrency firms and individuals. Experts believe that in an attempt to control the collection of crypto taxes, China could legalize crypto.
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Colin Wu reported that local tax authorities in China have begun imposing a 20% personal income tax on the investment profits of individual crypto investors and Bitcoin miners. China currently has strict regulations on illegal financial activities in the form of virtual currencies. However, based on the current situation, holding Bitcoin and cryptocurrencies in the portfolio is not explicitly prohibited by the law.
Cryptocurrency-related activities are not legal in China. This poses a challenge for taxation. As of early 2008, there were a lot of discussions around virtual tokens on online forums and games. Wu reported that experts are of the opinion that the need to tax cryptocurrencies may have the potential to force the legalization of the crypto industry in China.
While the Chinese government has been cracking down on cryptocurrency trading and mining, there are indications that they consider legalization and regulation of crypto to gain more control and collect taxes. Cryptocurrency-related activities are not legal, however this poses a problem for taxation and similar discussions have taken place as early as 2008.
In October 2021, China Tax News, a subsidiary of the State Administration of Taxation, published an article “Preventing Tax Risks from Virtual Currencies.” This represents the stance of tax authorities on digital assets and their taxation.
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Cardano price rallied by a little more than 3% to trade at $0.386. ADA price has maintained a rather low profile throughout the month of Jan as the 3rd generation cryptos only registered a 57% rise over the last four weeks.
ApeCoin Price is in question as the uptrend move is not delivering the same amount of strength witnessed in the trend prior. Traders should be on the lookout as a sudden dip could be the start of a much larger decline.
Dogecoin price is showing substantial evidence to suggest a market decline is on the way. Investors should be aware DOGE’s downside potential going into the final days of the month. A breach above $0.095 would invalidate the bearish thesis.
Bitcoin price had managed to recover all of its losses from November 2022, when the king coin slipped to trade at $15,000. Since then, BTC has attempted to rise further and clear a seven-month-long hurdle, in effect pushing the price above $25,000.
US Dollar Index (DXY) seesaws near 102.00 as the bulls struggle to defend the first daily gains in three, marked the previous day, during early Tuesday’s inactive trading.
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