China’s tax and financial regulators on Monday urged banks and local authorities to use blockchain and privacy computing to improve the “bank-tax interaction” model and expand financing for small businesses.
The State Administration of Taxation and the National Financial Regulatory Administration said in a joint policy notice that banks and taxpayers should standardize data sharing and reduce information asymmetry among tax authorities, banks and enterprises.
The report also urged banks to improve lending models, improve credit approval efficiency and increase the supply of financing services to “honest, taxpaying businesses.”
The directive is in line with China’s broader efforts to integrate blockchain into its data infrastructure, following a roadmap from the National Development and Reform Commission released in January 2025 aimed at nationwide implementation by 2029.
Shen Zhulin, the deputy director of the National Data Administration, said at a January 2025 press conference that China expects blockchain-based data infrastructure to attract 400 billion yuan (about $58 billion) in investment annually.
Chinese regulators outline a boost for data infrastructure with a target of 400 billion yuan
While China has imposed strict controls on cryptocurrencies and speculative trading in digital assets, it has also pushed for the integration of blockchain initiatives into its financial and data infrastructure.
In October 2019, Chinese President Xi Jinping highlighted the technology as a major “breakthrough” for independent innovation of core technologies, urging the acceleration of the development of blockchain-based applications and their integration into the real world economy.
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In April 2021, the Shenzhen Tax Bureau expanded the country’s first blockchain electronic invoicing system.
However, in September of the same year, China issued a nationwide ban on crypto transactions and mining as part of a broader crackdown on multiple government agencies.
Despite the ban, China is still listed as the third largest Bitcoin (BTC) mining country. According to data from Compass Mining, it accounted for 11.7% of the global hashrate as of January 2026.
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