China’s tax and financial regulators on Monday called on banks and local authorities to adopt blockchain and privacy-preserving technologies to upgrade the “bank-tax interaction” system and expand access to financing for small businesses.
In a joint policy notice, the State Administration of Taxation and the National Financial Regulatory Administration urged banks and taxpayers to standardize data sharing, aiming to reduce information gaps between tax authorities, financial institutions, and enterprises.
The guidance also encourages banks to refine credit assessment models, improve approval efficiency, and increase lending support for compliant, tax-paying businesses.
This move aligns with China’s broader push to integrate blockchain into its data infrastructure, following a National Development and Reform Commission roadmap released in January 2025 that targets nationwide implementation by 2029.
At a January 2025 press conference, National Data Administration deputy director Shen Zhulin said the country expects blockchain-based data infrastructure to attract around 400 billion yuan (approximately $58 billion) in annual investment.
Chinese regulators outline data infrastructure push with 400 billion yuan target
While China maintains strict controls on cryptocurrencies and speculative digital asset trading, it continues to promote blockchain adoption in finance and data infrastructure.
Back in October 2019, President Xi Jinping described blockchain as a key “breakthrough” for independent innovation in core technologies, calling for faster development and deeper integration into the real economy.
In April 2021, the Shenzhen Tax Bureau expanded the country’s first blockchain-based electronic invoicing system, marking a significant step in practical implementation.
However, just months later, in September 2021, China imposed a nationwide ban on crypto trading and mining as part of a broader regulatory crackdown involving multiple government agencies.
Despite the ban, China remains a major player in Bitcoin mining, ranking as the third-largest contributor globally. As of January 2026, it accounted for 11.7% of the total network hashrate, according to Compass Mining data.
