Chinese tax authorities have intensified reporting obligations for residents regarding overseas earnings, including cryptocurrency income. This measure may significantly impact investor liabilities.
Citizens' Tax Reporting Obligations
As of August 4, 2025, citizens of China are required to report income earned abroad, including profits from cryptocurrencies. Tax authorities emphasize that non-compliance may lead to enforcement actions, including penalties. Individuals who live in China or spend more than 183 days there in a year are regarded as tax residents and must report their global earnings under Chinese law.
Impact on Cryptocurrency Market
According to CoinMarketCap, as of August 4, 2025, Bitcoin (BTC) is trading at $114,360.08, with a market cap of $2.28 trillion. The cryptocurrency has seen a 21.37% increase over the past three months. Meanwhile, the trading volume has dropped by 13.20%, indicating fluctuating interest. Bitcoin holds a 61.11% market dominance, reflecting its stable position.
Expert Opinions and Consequences for Investors
Experts from Coincu suggest that China's new tax policy may drive investors to seek legal frameworks that optimize tax compliance. Li Na, Associate Professor at East China University of Political Science and Law, states, "Declaring overseas income is not just a Chinese requirement. It is standard practice in most countries and regions."
The tightening of tax reporting requirements in China could have serious implications for cryptocurrency investors. This may lead to a reassessment of international tax planning strategies.
