China Launches Beijing Blockchain Research Center: Taxing Cryptos Now!

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• China has launched a state-supported blockchain research center in Beijing with the goal of promoting the integration of technology into daily life.
• The center plans to develop a research network with local universities, think tanks, and blockchain companies to explore and develop core blockchain technologies.
• Despite the Chinese government’s ongoing crackdown on cryptocurrencies, the launch of the National Blockchain Technology Innovation Center reflects the government’s enthusiasm for blockchain technology.

China Launches Beijing Blockchain Research Center

China has launched a state-supported blockchain research center in Beijing with the goal of promoting the integration of technology into daily life through focused research and development efforts. The new institution will be led by the Beijing Academy of Blockchain and Edge Computing (BABEC), an entity popular for developing the Chang’an Chain or ChainMaker blockchain.

Goals of Research Center

The center plans to develop a research network with local universities, think tanks, and blockchain companies in order to explore and develop core blockchain technologies. The research findings will be utilized to further digitalize China and grow its blockchain industry.

Chinese Government’s Enthusiasm for Blockchain Technology

Despite the Chinese government’s ongoing crackdown on cryptocurrencies, the launch of the National Blockchain Technology Innovation Center reflects the government’s enthusiasm for blockchain technology. Blockchain technology was first mentioned in China’s five-year policy plan in 2021 and was identified as playing a key role in the country’s digital economy. In addition to blockchain research, the Chinese government is also prioritizing the development of a central bank digital currency. Millions of dollars in e-CNY have been distributed nationwide to boost its adoption.

Regulating Cryptocurrencies Through Taxes

On Jan. 30, Tron founder Justin Sun announced that China is taking significant steps to regulate cryptocurrencies through taxes levied on digital asset transactions. The move signals that the Chinese government is seemingly viewing cryptocurrencies as a „legitimate form of wealth,“ and is therefore seeking to tax them.

Conclusion

The launch of this National Blockchain Technology Innovation Center demonstrates China’s commitment towards integrating technological advancements into their society while also seeking ways to regulate cryptocurrency use within their borders through taxation policies.