Beijing-based cryptocurrency mining firm Bitmain has reportedly violated tax regulations in China, with local authorities imposing major fines.
The Beijing Municipal Office of the State Administration of Taxation hit Bitmain Technologies with a tax penalty on April 11, according to the local news source Sina Finance. According to the article, the regulator fined the mining firm around 25 million Chinese yuan, or $3.7 million, using information from China’s data registration of private and public firms, Qichacha.
According to data, Bitmain was sanctioned on April 4, 2023, for allegedly failing to pay personal income taxes in compliance with China’s tax administration legislation. The statement explicitly mentioned several tax infractions involving Bitmain workers’ salary, bonuses, labor dividends, allowances, and other revenue.
The tax authority also mentioned that tax inspectors delivered a notice on certain tax violations to Bitmain in August 2022. So far, Bitmain’s Beijing unit has failed to pay personal income tax totaling 16.6 million yuan, or $2.4 million.
Bitmain, which was founded in 2013, is one of the world’s top cryptocurrency mining firms, best known for producing crypto mining-specific gear and solutions. In reaction to the Chinese government’s sweeping ban on cryptocurrency enacted in September 2021, the company was reportedly compelled to cease operations in China in October 2021.
Despite regulatory uncertainties and a catastrophic bear crypto market in 2022, Bitmain’s company appears to be thriving. Despite falling mining profitability, Bitmain’s newest Antminer gadget allegedly sold out in less than a minute in December.
The founder Jihan Wu established a $250 million fund in September 2022 to assist the mining sector hit by the lengthy cryptocurrency winter. Wu launched Bitdeer, a new crypto mining company, after quitting Bitmain in 2021.