In China, activities related to virtual currency are recognized as illegal financial activities. However, it is not illegal for individuals to hold virtual currency assets, but profits from trading are subject to tax, and cashing out requires extra attention to risks. 一起交流更多

From a tax perspective, according to a document issued by the Shanghai Municipal Taxation Bureau of the State Administration of Taxation, individuals buying and selling virtual currencies online should pay individual income tax based on 'income from property transfer.' The original value of the property for selling virtual currencies is the price paid and related taxes and fees at the time of purchase. If the original value certificate cannot be provided, it will be determined by the competent tax authority.

Safe cashing out and risk control are key challenges. Due to the anonymity and decentralization of virtual currency transactions, the source and flow of funds are difficult to track, and cashing out may involve illegal funds such as money laundering and fraud, leading to account freezes or financial losses. For example, in OTC trading, if the chosen merchant has an unclear source of funds, or if transactions are frequent and amounts are abnormal, it may trigger bank risk control.

Although there are various channels available for cashing out in the cryptocurrency market, such as digital currency trading, bank card transfers, etc., Alipay clearly does not support virtual currency transactions. It is recommended to choose large platforms with regular and strict supervision, such as Binance and OKEx, as these platforms have good communication channels with regulatory agencies and relatively complete risk control measures. When conducting OTC transactions, try to use mainstream coins like BTC and ETH, and avoid directly using stablecoins like USDT. Choose a separate bank card that is not usually used, preferably from a local bank, as cards from large and medium-sized banks like Agricultural Bank of China, Industrial and Commercial Bank of China, China Construction Bank, etc., are more likely to be frozen by law enforcement agencies. Do not frequently trade with fixed merchants or users, actively take orders from large merchants and market makers, place fewer orders, and avoid problematic regional merchants. Reduce the frequency of cash withdrawals, increase the cash amount, and do not immediately transfer funds out after trading; keep them in the account for a period of time.

In summary, in cryptocurrency trading, investors should understand relevant tax policies and cash-out risks, operate cautiously, and protect their property safety and legal rights.