China Will Declare Crypto A ‘Form of Wealth’: Tron Founder

China is one of the most hostile crypto and Bitcoin countries on earth. Back in 2017, the People’s Bank of China (PBOC) banned exchange operations in China. In May 2021, the Chinese authorities ordered a ban on Bitcoin mining. By the end of September 2021, China’s central bank will ban all crypto transactions.

However, the controversial founder of Tron, Justin Sun, believe that China could soon celebrate a crypto comeback. In a Twitter thread, Sun wrote that China has taken a big step to regulate the industry by introducing a tax on transactions.

Sun said:

This marks the rise of the country’s cryptocurrencies. The tax on transactions is a clear indication that the Chinese government sees cryptocurrencies as a legitimate form of wealth and wants to ensure proper taxation.

Is China Preparing to Bring Back Crypto?

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

In addition, the founder of Tron claimed that “by increasing the use of cryptocurrencies in China, it is expected that the government will further regulate the crypto industry, providing more legitimacy and stability.”

In addition, Sun considers that the crypto tax in China can be a positive development for the entire global market and set a precedent for other countries. “Both TRON and Huobi have a strong focus on innovation and have been instrumental in driving the growth and development of blockchain technology in China,” he concluded.

However, not everyone interpreted the tax as a signal of a change in China’s policy. Given the speculation that private digital assets like Bitcoin have been banned from China due to the introduction of Central Bank Digital Currency (CBDC), the policy reversal seems too sudden.

Chinese journalist Collin Wu, however, disagrees with the founder of Tron. “Some have assumed that the Chinese government can recognize the legitimacy of cryptocurrencies, but the reality is more complicated, with different tax authorities and financial authorities,” Wu said.

It was first reported on January 25 that some local tax authorities in China have begun to impose a 20% personal income tax on investment profits from individual investors as well as many Bitcoin miners.

Bitcoin price today

At press time, Bitcoin price was at $23,327 after failing to break the $24,000 mark yesterday. Today, the market enters the most important week of the year. As Bitcoinist reported, in addition to the FOMC meeting on Wednesday, there are other important events coming up.

Investors should prepare for a volatile week. For Bitcoin, the resistance zone above $24,000 is now important, while the support around $22,700 at the bottom should be observed.