Online sellers in China may soon be facing the end of an era. A draft law is being considered by the Standing Committee of the National People’s Congress which proposes that online sellers be required to register with the state and pay taxes on their profits for the first time.

The proposed law has been on the table for over a year now, but the wheels of China’s government ground to a halt in advance of the National People’s Congress, held every five years. The 2017 Congress ended in October, leaving the door open for more decisive action to be taken.

Alibaba’s (NYSE: BABA) c-to-c and SME-to-c platform Taobao (淘宝) is reportedly named in the draft law, as are social media platforms, such as WeChat and Weibo. It is proposed that anyone registering as a seller on these platforms will need to apply for a license first.

The Chinese government has previously ordered e-commerce platforms like Taobao to up their internal verification procedures, after a wave of illegal activity, most frequently counterfeiting, were uncovered.

Taobao was added to the U.S. Trade Representative’s “notorious markets” blacklist at the end of 2016.

Since then, Alibaba and Taobao have been seen to be complying with this. Just recently the c-to-c transaction platform and social network Xianyu, a division of Taobao, instituted mandatory facial recognition for all mobile users.   

E-commerce sales grew on average 35 percent per year over the past five years, up to 5.16 trillion RMB (then $752 billion U.S.) — about 15 percent of all retail sales, according to China’s National Bureau of Statistics.

Initial reporting from Sixth Tone.

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