The domestic taxation on small investors trading US stocks has begun. Originally, I had some frens who were still holding onto the fantasy that small investors wouldn't be taxed, but now that hope has been shattered.

It is said that after the completion of the system upgrade for the major weapon, the Golden Tax Phase IV, the data of Chinese citizens in various institutions has been interconnected, allowing for big data cross-comparison. Once it is found that you have large foreign exchange inflows and outflows + overseas account balances, but personal income tax declaration is zero, the system will automatically issue a warning.

Moreover, it is said that the technical capabilities of the Golden Tax Phase IV far exceed expectations, and the current limiting factor for enforcement is manpower, not the base.

Now the pressure on local finances in the country is increasing, and overseas assets are a new source of tax revenue. It is an inevitable trend to expand from large households to small households.

In the future, it seems that the number of users trading U.S. stocks on-chain will continue to increase due to pressure from domestic regulations, leading to a rise in trading volume. This is a positive development for the RWA sector.

But suddenly I thought, wouldn't that cryptocurrency be an even newer source of tax revenue? If one day the Golden Tax system connects with the CEX system, then the pain of being forced to pay taxes that the people speculating in US stocks are experiencing will be felt by those in the crypto world. So scary.