China Pushes Banks to Use Blockchain for Tax Data Sharing and Small Business Loans

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China urges banks to adopt blockchain for tax data sharing and credit access

Chinese regulators want banks to improve how they handle taxes to make it easier for small businesses to get loans and funding.

Summary

  • China has urged banks to upgrade the bank tax interaction model using blockchain and shared data to improve financing access for small businesses.
  • Authorities are pushing for better credit models and faster approvals, with a focus on extending loans to compliant and tax paying enterprises.

Banks and taxpayers need to improve how they share data, according to new guidance from the State Administration of Taxation and the National Financial Regulatory Administration. This will help tax authorities, banks, and businesses have a clearer, more consistent understanding of financial information.

The agencies also recommended making credit scoring more accurate, speeding up the loan approval process, and providing more funding to businesses that reliably pay their taxes.

In January 2025, China announced a plan to incorporate blockchain technology into its national data systems, aiming for full implementation across the country by 2029.

Officials, including Shen Zhulin, a leader at the National Data Administration, estimate the plan could bring in roughly 400 billion yuan—around $58 billion—in investments each year.

In 2019, Chinese President Xi Jinping praised blockchain technology as a significant advancement and encouraged its use in practical applications. Following this, China broadened its initial blockchain-powered electronic invoice program through the Shenzhen Tax Bureau.

China’s anti-crypto push

While China supports the technology behind blockchain, it continues to heavily regulate and restrict cryptocurrencies and risky digital asset trading.

In 2021, the government released a set of rules that essentially prohibited all cryptocurrency transactions and mining across the country.

In February 2026, regulators broadened the rules to specifically include stablecoins and digital versions of real-world assets. They now require approval before any stablecoin linked to the Chinese Yuan (RMB) can be created and stated that offering tokenized assets without a license will be considered illegal financial activity.

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2026-04-06 14:11