{"id":225745,"date":"2024-01-08T19:16:32","date_gmt":"2024-01-08T13:46:32","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=225745"},"modified":"2024-01-08T19:16:32","modified_gmt":"2024-01-08T13:46:32","slug":"shanghais-cryptocurrency-tax-guide-fuels-relaxation-rumors-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/shanghais-cryptocurrency-tax-guide-fuels-relaxation-rumors-crypto-news\/","title":{"rendered":"Shanghai’s Cryptocurrency Tax Guide Fuels Relaxation Rumors – Crypto News"},"content":{"rendered":"

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An article posted by the Shanghai Municipal Tax Service explained taxes on digital currency transactions in China<\/a>. It sparked speculations regarding a potential relief of the stringent China crypto ban regulations. The explainer was titled \u201cCommon Misunderstandings Regarding Personal Income Tax on Business Income and Categorised Income.\u201d<\/p>\n

According to a report<\/a> by the South China Morning Post, the guide garnered immense attention after being published on WeChat on Sunday, January 7, 2024. The document referenced a 2008 statement by the State Taxation Administration (STA). Thereafter, some mainland crypto content creators suggested that taxing these transactions signals that Chinese authorities acknowledge the legitimacy of cryptocurrencies.<\/p>\n

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The Shanghai tax service later deleted the disputable crypto tax guide from its public WeChat account. The attention grabbed by the Shanghai tax service\u2019s explainer reflects the hope within Chinese crypto circles for a review of the country\u2019s strict crypto ban. The situation is even more critical considering Beijing\u2019s push to encourage the digital yuan<\/a> adoption.<\/p>\n

Furthermore, China\u2019s Ministry of Industry and Information Technology recently announced plans to draft a national Web3 development plan. However, it did not explicitly mention cryptocurrencies. On the other hand, legal experts on the mainland clarified that the Shanghai tax service\u2019s explainer doesn\u2019t indicate any potential change in the China crypto ban policy.<\/p>\n

Guo Zhihao, a Partner at Yingke in Beijing, busted the above-mentioned rumors in a WeChat post on Sunday. He noted that the questionable cryptocurrency tax guide is not an official policy document. Moreover, he added the STA statement which refers to talks about the virtual tokens used in video games.<\/p>\n

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Also Read: Nvidia To Launch China-centric AI Chips Amid US Export Restrictions<\/a><\/strong><\/p>\n

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Hence, the article highlighted that individuals obtaining virtual currencies via online video game players and generating revenue by selling them must pay income tax. Additionally, it detailed taxation in four scenarios, including loans from investee companies and online monetary gifts.<\/p>\n

China\u2019s Crackdown On Crypto<\/h2>\n

Unveiling the China crypto ban policy in 2017 was an extreme step on the country\u2019s part. Thereafter, it has intensified its crackdown on all cryptocurrency-related activities over the years, citing financial stability risks. This stance persists, even as it supports Hong Kong<\/a>\u2019s aspirations to become a hub for virtual assets, including cryptocurrencies.<\/p>\n

Chinese authorities recently cracked down on the use of cryptocurrencies in illegal foreign exchange trading. On December 27, 2023, the Supreme People\u2019s Procuratorate and State Administration of Foreign Exchange asked forex regulators and prosecutors to keep a check on foreign exchange activities. The prime focus has been on cases where Tether (USDT)<\/a> is used as an intermediary for trading yuan with other currencies.<\/p>\n

Also Read: China Tightens Crypto Grip with Zhao\u2019s 7-Year Sentence<\/a><\/strong><\/p>\n

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CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article. <\/p>\n<\/p><\/div>\n

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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.<\/p>\n<\/div><\/div>\n<\/p><\/div>\n

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An article posted by the Shanghai Municipal Tax Service explained taxes on digital currency transactions in China. It sparked speculations regarding a potential relief of the stringent China crypto ban regulations. The explainer was titled \u201cCommon Misunderstandings Regarding Personal Income Tax on Business Income and Categorised Income.\u201d According to a report by the South China […]<\/p>\n","protected":false},"author":2,"featured_media":225746,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[173],"tags":[201,248,251,246,257,255,250,252,247,253,249,256,254],"class_list":["post-225745","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-others","tag-blockchain","tag-bsc","tag-chainlink","tag-coin","tag-cryptocurrency","tag-gta","tag-looks-rare","tag-oracle","tag-polygon","tag-quickswap","tag-safe-moon","tag-wallet","tag-wordpress"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/225745","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=225745"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/225745\/revisions"}],"predecessor-version":[{"id":225748,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/225745\/revisions\/225748"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/225746"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=225745"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=225745"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=225745"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}