Chinese regulators are calling on banks and local authorities to deploy blockchain technology and privacy computing tools to modernize the country’s bank-tax interaction system. The State Administration of Taxation and the National Financial Regulatory Administration issued a joint policy notice on Monday outlining the directive. The move is aimed at standardizing data sharing among tax authorities, banks, and enterprises while reducing information gaps that currently limit financing options for smaller firms. Regulators also urged banks to refine their credit models and streamline approval processes.
The policy specifically targets what officials describe as honest, tax-compliant enterprises, seeking to increase the supply of financing services available to them. By improving credit assessment efficiency, regulators hope to channel more capital toward small businesses that have historically struggled to access bank lending. The notice frames data transparency as a key mechanism for building trust between financial institutions and smaller borrowers. Reducing information asymmetry is presented as central to achieving that goal.
The directive fits within a broader national strategy to embed blockchain across China’s data infrastructure. The National Development and Reform Commission released a roadmap in January 2025 targeting nationwide blockchain implementation by 2029. Shen Zhulin, deputy director of the National Data Administration, stated at a January 2025 press conference that blockchain-based data infrastructure is expected to attract around 400 billion yuan, equivalent to approximately $58 billion, in annual investment. These figures underscore the scale of ambition behind China’s blockchain push.
China’s interest in blockchain as a legitimate infrastructure tool dates back several years. In October 2019, President Xi Jinping described the technology as an important breakthrough for independent innovation in core technologies, calling for faster development of blockchain applications and their integration into the real economy. In April 2021, the Shenzhen Tax Bureau expanded the country’s first blockchain-based electronic invoice system, marking an early practical application of the technology in public finance.
China’s approach to blockchain, however, exists alongside strict restrictions on digital assets. In September 2021, the country imposed a nationwide ban on cryptocurrency transactions and mining, a crackdown coordinated across multiple government agencies. The ban drew a clear line between state-sanctioned blockchain applications and speculative crypto activity, a distinction that continues to define regulatory policy. Officials have consistently promoted the underlying technology while discouraging its association with decentralized financial speculation.
Despite the mining ban, China continues to rank among the world’s leading Bitcoin mining nations. As of January 2026, the country accounted for 11.7% of the global hashrate, according to data from Compass Mining, placing it third globally. This persistent mining activity suggests that enforcement of the 2021 ban remains incomplete in practice. The gap between official policy and on-the-ground reality continues to draw attention from analysts monitoring the global crypto landscape.
Originally reported by CoinTelegraph.
