What would happen if the domestic market opens up blockchain business and controls it in some core areas:
Core Business (Official Coordination):
- OTC - Clear and traceable records of deposits and withdrawals, all unofficial transactions will be treated as illegal.
- CEX - Transaction records, including on-chain activities, are clear and transparent. No one can escape from paying taxes. Funds from unverified CEX platforms will be considered illegal.
- RWA - Real-world assets are put on the blockchain, expanding the scope.
Scenario 1:
Xiao Ming spent 50,000 RMB to purchase some digital currencies on an official exchange. He transferred the purchased tokens to his on-chain wallet, ready to conquer the market. After months of hard work, his wallet only contains some useless meme coins and a bunch of fancy pictures. He didn't give up and spent another 50,000 RMB to buy digital currencies. He succeeded and made 1 million RMB. With joy, he paid his taxes and withdrew 400,000 RMB.
Scenario 2:
Er Dan spent 50,000 RMB to buy digital currencies on an unofficial exchange. He is a genius and within a few months, he earned his first 1 million RMB. He happily withdrew the 1 million RMB to his bank account and enjoyed his life. After some time, a group of authorities came knocking on his door and took him away because the money he earned was considered illegal.
Scenario 3:
Xiao Hei spent 50,000 RMB to buy digital currencies on an official exchange. He is a talented person and within just 2 months, he earned 10 million RMB on the blockchain. However, he didn't want to pay too much tax, so he sent the money to a foreign exchange and withdrew it there. Xiao Hei worked hard for several years and finally accumulated substantial assets overseas. He applied for immigration, but the tax authorities presented his on-chain records from these years and demanded him to pay the outstanding taxes.
Scenario 4:
Over the years, Xiao Hua has accumulated a considerable amount of wealth in China. He has always dreamed of a life abroad and planned to immigrate to start a new life. However, transferring assets out of the country would incur a high amount of taxes. Therefore, he chose to use blockchain to transfer his assets. Due to the amount restrictions, he converted RMB to digital currencies on both official and unofficial exchanges, and then transferred them to overseas exchanges through the blockchain for withdrawal, until a group of authorities...