Beijing-based cryptocurrency mining firm Bitmain has been fined $3.7 million for violating tax regulations in China.
Bitmain Technologies has been fined by the Beijing Municipal Office of the State Tax Administration, local news agency Sina Finance reported on April 11th. Citing details from Qichacha, the data record of China’s private and public companies, the report said the authority fined Bitmain about 25 million Chinese yuan.
Bitmain Received Notice of Tax Violations
Bitmain was penalized for allegedly failing to pay personal income taxes in accordance with Chinese tax collection administration laws.
The statement referred to specific violations regarding taxes on Bitmain employees’ salaries, bonuses, labor dividends and income from benefits. The tax office also highlighted that tax inspectors sent Bitmain a notification of certain tax violations in August 2022. Bitmain’s Beijing unit has so far not paid personal income taxes totaling 16.6 million yuan.
Founded in 2013, Bitmain is one of the world’s largest crypto mining companies, known for producing hardware and solutions specific to crypto mining. The company was forced to cease its operations in China in October 2021 after crypto bans imposed by the Chinese government.
In September 2022, Bitmain founder Jihan Wu created a $250 million fund to support the mining industry, which has been affected by the protracted crypto winter. Wu founded Bitdeer, a subsidiary of Bitmain, after leaving Bitmain in 2021.
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