TRON applauds China’s tax guidelines for cryptocurrencies
You see [TRX] The network said it was open to taxing cryptocurrencies if it would help the sector develop properly after China announced new regulatory guidelines.
The horrible events in the cryptocurrency market in 2022 have undoubtedly increased the focus on regulation. As a result, governments will now be able to tax the cryptocurrency market amidst much of the regulatory scrutiny we have seen during the year.
TRON announced that it prefers taxing cryptocurrencies as long as it helps in sustainable growth. The recent meeting of the Federal Open Market Committee may have implications for TRX.
Tron may investigate the possibility of the Chinese cryptocurrency market
The network’s concerns, in a way that could be beneficial to the industry as a whole, are underscored by TRON’s stance on cryptocurrency taxation. However, the ambitions of the network can also serve as a clue.
Lark Davis points out that China’s previous stance, which tended to be zero tolerance for cryptocurrency, has reversed.
Instead, the Asian country appears to be adopting a more relaxed stance and tax strategy that emphasizes regulation. The fact that TRON saw the potential for web3 to expand into China is one of the reasons for this.
TRON has yet to make any public statements regarding its targets in China. However, its reaction to China’s move to regulate cryptocurrency is remarkable. In other words, any potential interest of TRON in China remained a matter of speculation.
How does TRX work on the charts?
When we talk about speculation, we have to mention that over the past few days, the demand for Tron’s native coin, TRX, has plummeted. This indicates the deterioration in investor sentiment stemming from the need for more clarity on the market’s path ahead of the FOMC meeting.
Despite the shift in investor sentiment from bulls to bears, Binance’s funding rate has held up well. This indicates some slight selling pressure in the futures market, which may explain why TRX holds some resistance against the bears.
During the third week of January, the amount of development work done on TRON fell to its lowest level in the previous four weeks.
However, the last few days of the month saw a pick-up in the development activity that was happening. This contributed to a more positive attitude. At the time of writing, TRON has increased its volume by 15% and the price by 2.7% over its previous 24-hour price.
Due to the latest FOMC event, TRX may see more gains this week. The Fed raised interest rates by 25 basis points (BPS), which was in line with what was expected.
Investors may see this as a positive outcome. However, the extent of the impact on pricing will depend on the level of future demand as well as whether or not the news from the Fed has actually been priced in.