Justin Sun, the founder of TRON (TRX), believes China is preparing a crypto comeback with the implementation of a tax on crypto.
China’s comeback
TRON founder Justin Sun said on Monday that China is preparing for a comeback in the crypto industry. In mid-2021, there was a crackdown on crypto trading and crypto mining. Meanwhile, China has taken a big step towards crypto regulation. It has done this through the introduction of a tax on crypto transactions. Justin Sun remains confident in China’s adoption of Tron.
Justin Sun said on Twitter that China is hinting at a return to the crypto industry. He believes it is a big step towards cryptocurrency regulation.
China’s local tax authorities have reportedly already started imposing a 20% tax on crypto. Justin Sun claims that taxing crypto transactions clearly indicates that the Chinese government considers cryptocurrencies to be a legitimate form of wealth and wants to ensure proper taxation.
The tax policy will boost the adoption of crypto in the country. In addition, it will provide a clear regulatory framework for people and businesses. China is expected to further regulate the crypto industry to provide further legitimacy and stability. It is worth mentioning that the tax rate is not necessarily fixed, the 20% that is currently levied could theoretically change every year.
The crypto tax in China is a positive development for the global cryptocurrency market and can be an example for other countries.
—Justin Sun
Justin Sun on his way to Hong Kong
Justin Sun has announced that he is moving to Hong Kong. He does this because he believes that the Chinese crypto market is on the rise.
Experts predict China will dominate the next crypto bull market amid plans for Hong Kong crypto hubs. He believes that TRON and Huobi Global will lead Hong Kong’s crypto-related development.
Moreover, he believes TRX will eventually be accepted in China as most of the Chinese use TRX.