China’s offshore tax crackdown could inadvertently fuel a digital dollar boom

Hugh Harsono writes regularly for multiple publications about cyberspace, economics, foreign affairs and technology.From October 22, China’s grace period for the disclosure and settlement of certain offshore-trust tax liabilities ends.For the Chinese government, this deadline highlights its desire to affirm control over capital outflows, while for Chinese high-net-worth families, it serves as a reminder that it is now harder to keep international assets beyond the reach of the government.The deadline sits against the backdrop of China tightening scrutiny around cryptocurrency, stablecoins and real-world asset tokenisation.The authorities have reaffirmed that all cryptocurrency-related activities remain illegal, while also imposing strict limits on yuan-pegged stablecoins both within and outside the country and on tokenised-asset activity outside approved financial infrastructure.