Bitmain Incurs Hefty Fine for Unpaid Taxes in China – Bitcoin News


Leading crypto mining hardware manufacturer Bitmain has been hit with a hefty fine from Chinese authorities for failing to pay taxes, according to reports from local media.

China Imposes Large Penalty for Tax Violations

Chinese crypto journalist Colin Wu, also known by his Twitter handle ‘Wu Blockchain,’ reported on Tuesday that Beijing Bitmain Technology is facing a penalty of nearly 25 million yuan (over $3.6 million at the time of writing) imposed by the municipal taxation bureau in the Chinese capital.

According to the report by Sina Finance, Bitmain has failed to withhold and pay individual income tax on benefits provided to its employees such as travel subsidies. The amount, due under the Tax Collection and Administration Law of the People’s Republic, exceeds 16.6 million yuan (over $2.4 million).

The company had earlier been notified by the Beijing tax authority about its obligations in August 2022, the publication further noted. Nevertheless, Bitmain has not yet withheld and paid the above-mentioned personal income tax, Sina Finance wrote.

In a consequent tweet, Wu Blockchain pointed out that the Chinese government has stepped up tax investigations in the crypto sector since last year. According to the crypto blogger, bitcoin miners and large cryptocurrency traders have been specifically targeted.

Following China’s crackdown on crypto-related activities like mining in early 2021, Bitmain announced in October of that year that it was terminating deliveries of mining equipment to customers in the mainland. According to media reports, the Beijing-based company, which makes application-specific integrated circuit (ASIC) mining rigs, was also considering moving most of its production elsewhere in the region.

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Bitmain, China, chinese, Crypto, crypto mining, Cryptocurrencies, Cryptocurrency, income tax, mining, Mining Devices, mining equipment, mining hardware, mining machines, mining rigs, Tax, tax authority, tax violations, Taxation, Taxes

Do you think the Chinese tax authorities will increase the pressure on crypto companies still operating in the country? Share your thoughts on the issue in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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