China's tax authorities are ramping up efforts to trace overseas income from 2022 to 2024, potentially impacting virtual currency transactions. Under the Common Reporting Standard (CRS) and the advancing framework for crypto asset reporting, gains from cryptocurrency trades may be classified as "property transfer income" and subject to personal income tax. As the visibility of fund transfers increases and information exchange improves, regulatory gaps are closing, signaling a more stringent oversight on crypto-related activities.