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

Nevertheless, the controversial founder of Tron, Justin Sun, believes that China could soon celebrate a crypto comeback. In a Twitter thread, Sun wrote that China has taken a big step towards regulating the industry by introducing a tax on transactions.

Sun stated:

This signals the country’s increasing embrace of cryptocurrencies. The tax on transactions is a clear indication that the Chinese government views cryptocurrencies as a legitimate form of wealth and wants to ensure its proper taxation.

Is China Preparing For A Crypto Comeback?

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.

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

In addition, Sun theorizes that the crypto tax in China could be a positive development for the entire global market and a precedent for other countries to follow. “Both TRON and Huobi have a strong focus on innovation…