The State Administration of Taxation (STA) and the National Administration of Financial Regulation (NAFR) of China have jointly issued a new directive aimed at deepening the "Bank-Tax Interaction" framework. According to the notice published via the official Shanghai Taxation channels on April 5, 2026, the regulators are encouraging the integration of blockchain technology and privacy computing to enhance data sharing between financial institutions and tax authorities. This initiative is designed to innovate credit models and improve the efficiency of financial services for taxpayers while ensuring strict legal compliance.
Technological Innovation in Financial Supervision
The "Notice on Further Deepening and Regulating the Work of 'Bank-Tax Interaction'" emphasizes the need for a more sophisticated digital infrastructure to facilitate the exchange of tax-related data. By utilizing distributed ledger technology (DLT), the authorities aim to create a transparent and tamper-proof environment for verifying corporate tax records, which serves as a critical component for credit assessment by commercial banks.
- Blockchain Implementation: Creating decentralized systems for secure, real-time data verification between banks and the STA.
- Privacy Computing: Employing technologies like Multi-Party Computation (MPC) to ensure data "remains usable but not visible" during the credit evaluation process.
- Regulatory Compliance: Ensuring that all data processing activities adhere to the latest national standards for data security and personal information protection.
Strategic Alignment with National Blockchain Goals
This directive aligns with China’s broader National Data Infrastructure Construction Guidelines, which target the establishment of a comprehensive national blockchain network by 2029. In early 2026, the People's Bank of China (PBoC) also transitioned the e-CNY (digital yuan) to a deposit-money model, further integrating smart contracts into the national financial architecture. The STA’s focus on blockchain follows a significant increase in cross-provincial electronic tax payments, which exceeded 130 billion yuan in the previous fiscal year.
Privacy computing is particularly relevant here as it allows banks to assess a company's creditworthiness based on tax data without actually transferring sensitive raw datasets, thereby mitigating risks of data leaks.
The move represents a shift toward more institutionalized and digitalized governance within the Chinese financial sector. By leveraging the immutable nature of blockchain, the STA and NAFR seek to reduce credit risks for banks while streamlining the loan approval process for compliant small and medium-sized enterprises (SMEs). This high-tech approach to "Bank-Tax Interaction" is expected to serve as a cornerstone for the "five key areas of finance" promoted in the 2026 Regulatory Work Conference.
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