Currently, among the top exchanges, seven out of the top ten are established by Chinese individuals.
Therefore, in the crypto industry, if classified by ethnicity, Chinese individuals are likely the most influential group, without a doubt. Although mainland China has some of the strictest restrictions on cryptocurrencies, the identity of someone from mainland China is actually the most suitable for trading cryptocurrencies! Reason one: Many countries have restrictions on identity for exchange registration.
Mainland China's restrictions on exchanges mainly involve blocking access, but there are no restrictions if the person is overseas.
Even the most obedient exchanges, like Hashkey licensed in Hong Kong, thoughtfully provide detailed options for individuals holding mainland Chinese passports. Overall, as long as it is clear that the person is overseas, they do not obstruct.
Compared to the so-called 'support for crypto' in the United States, any exchanges are completely prohibited if you have a U.S. identity or are a foreigner in the U.S.! Reason two: The U.S. claims to support crypto, but as an American, profits made from trading cryptocurrencies are subject to tax. The capital gains tax for short-term high-frequency trading has a maximum rate of 37%, and the highest rate for long-term holdings is only 20%.
Japan is even more extreme, taxing cryptocurrency profits at a comprehensive income tax rate of up to 55%. However, reports in early 2025 suggested that the ruling party proposed to lower the tax rate to 20% to promote tax reform. Germany is truly more crypto-friendly; selling cryptocurrency after holding it for over a year is exempt from capital gains tax. If sold within a year, profits below 600 euros are also tax-exempt; profits exceeding this are taxed at the standard income tax rate. But if you are trading cryptocurrencies and hold a Chinese passport, I believe not many have paid taxes, right? However, if you incur losses trading cryptocurrencies, in most countries, you are not required to pay taxes. There are always exceptions; in some countries, taxes must be paid regardless of profit or loss! This peculiar country is India, which has imposed a 1% withholding tax on cryptocurrency transactions since July 2022, deducted by exchanges for each transaction. Additionally, cryptocurrency gains are taxed at a rate of 30%, and losses cannot offset other income!
Another equally peculiar country is Switzerland, which is known as a tax haven. Switzerland is not lenient with its own citizens! As the base for the Ethereum Foundation, it can be said to be absolutely crypto-friendly. However, various Swiss cantons impose a wealth tax based on year-end net asset value, with rates usually between 0.1% and 1%. As long as you hold cryptocurrency, regardless of its value fluctuations, if it is valuable, you must pay taxes! So everyone, cherish your Chinese passport!