China’s tax and financial authorities have urged banks and local governments to adopt blockchain technology and privacy computing to strengthen the “bank-tax interaction” model and expand financing for small and medium-sized enterprises.
In a joint policy notice, the State Administration of Taxation and the National Financial Regulatory Administration called for standardized data sharing to reduce information asymmetry among tax authorities, banks and companies. The notice urged banks to upgrade credit models, speed credit approvals and boost financing to “honest, tax-paying enterprises.”
The directive aligns with Beijing’s broader push to integrate blockchain into national data infrastructure. In January 2025 the National Development and Reform Commission released a roadmap targeting nationwide blockchain implementation by 2029. Shen Zhulin, deputy director of the National Data Administration, said at a January 2025 press briefing that China expects blockchain-based data infrastructure to attract about 400 billion yuan (roughly $58 billion) in annual investment.
China has promoted blockchain for years despite strict controls on cryptocurrencies. President Xi Jinping in 2019 called blockchain an important breakthrough for core technological innovation and urged accelerated development and real-economy integration of blockchain applications. In April 2021 the Shenzhen Tax Bureau expanded the country’s blockchain electronic invoice system. However, China issued a nationwide ban on crypto transactions and mining in September 2021 as part of a broader regulatory crackdown.
Despite that ban, China has remained a significant player in Bitcoin mining. Compass Mining data showed China accounted for about 11.7% of global Bitcoin hashrate in January 2026.
The recent notice highlights the government’s dual approach: limiting speculative crypto activity while promoting blockchain and privacy-preserving data technologies to improve financial transparency, reduce lending frictions and support credit access for compliant businesses.