8xbet Bitcoin mining firm Bitmain reportedly fined for tax violations - BLOCKCHAINWEBBAG

Bitcoin mining firm Bitmain reportedly fined for tax violations

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Beijing-based cryptocurrency mining firm Bitmain has reportedly violated tax regulations in China, with local authorities imposing major fines.

Bitmain Technologies has been slapped with a tax penalty from the Beijing Municipal Office of the State Administration of Taxation, the local news agency Sina Finance reported on April 11.

The authority fined Bitmain about 25 million Chinese yuan, or $3.7 million, the report notes, citing details from China’s data registry of private and public companies, Qichacha.

According to the data, Bitmain was penalized on April 4, 2023, with the firm allegedly failing to pay personal income taxes in accordance with China’s laws on administration of tax collection. The statement specifically referred to certain violations related to taxes on the income from Bitmain employees’ salaries, bonuses, labor dividends, allowances and others.

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.

Founded in 2013, Bitmain is one of the world’s largest cryptocurrency mining companies, widely known for manufacturing crypto mining-specific hardware and solutions. The company was reportedly forced to stop its business in China in October 2021 in response to a blanket ban on crypto imposed by the Chinese government in September 2021.

It appears to be unclear how the firm has been running its operations since. Bitmain did not immediately respond to Cointelegraph’s request for comment.

Related: Bitcoin proponents respond to New York Times’ BTC mining report

Despite regulatory uncertainty and a major bear crypto market in 2022, Bitmain’s business has apparently continued to see success. In December, Bitmain’s latest Antminer device reportedly sold out in less than a minute despite tanking mining profitability.

In September 2022, Bitmain founder Jihan Wu set up a $250 million fund to support the mining industry affected by the prolonged cryptocurrency winter. After leaving Bitmain in 2021, Wu founded Bitdeer, a new crypto mining firm and a spin-off of Bitmain.

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