Bitmain Faces Major Fines for Tax Infringements in China
According to recent reports, Bitmain, a cryptocurrency mining company based in Beijing, China, has been fined for violating tax regulations.
On April 11, the Beijing Municipal Office of the State Administration of Taxation imposed a tax penalty of approximately 25 million Chinese yuan ($3.7 million) on Bitmain Technologies.
The penalty was for failing to pay personal income taxes, including taxes on employee salaries, bonuses, labor dividends, and allowances, in compliance with China’s tax collection laws.
Bitmain was notified of the tax violations in August 2022 but has failed to pay the personal income tax, amounting to 16.6 million yuan ($2.4 million) to date. Bitmain is one of the world’s leading cryptocurrency mining firms, known for producing mining-specific hardware and solutions.
In response to China’s blanket ban on cryptocurrencies in September 2021, Bitmain reportedly ceased operations in China in October 2021.
Despite the regulatory ambiguity and the bear market, the company’s latest Antminer device sold out in less than a minute in December 2022.
After leaving Bitmain in 2021, founder Jihan Wu founded Bitdeer, a new cryptocurrency mining company, and Bitmain spin-off.