Today, there are rumors in the community that profits from trading US stocks are being taxed by the mainland tax bureau, and that Futu and Tiger Brokers are suspected of providing information to the tax bureau.

Some friends are also concerned whether profits from trading cryptocurrencies will be taxed.

I believe that, for now, they will not be, because the legality in the mainland is uncertain and there is no legal basis.

However, the tax department definitely wants to impose taxes. In the past few years, they have tested the waters; some exchanges have already submitted information and data about large accounts to them. A few large accounts and many companies in the cryptocurrency sector have also been investigated, but there has not been a large-scale rollout. As long as an exchange has a large number of users in a certain area, the tax department will ultimately request information and KYC.

In short, trading cryptocurrencies is very special in the mainland. You can say it is illegal, but individual investments are not illegal. You can say it is not illegal, but the government claims that the law does not protect relevant activities. In summary, it is a very peculiar gray area.