Report Says China Fines Bitmain $3.6 Million for Tax Violations

Report Says China Fines Bitmain $3.6 Million for Tax Violations – According to Chinese crypto journalist Colin Wu, who is also known as ‘Wu Blockchain’ on Twitter, Bitmain, which is among the biggest manufacturers of cryptocurrency mining equipment globally, has been fined for not paying taxes. This information was circulated on social media.

On Tuesday, Wu cited a report from Sina Finance stating that Beijing Bitmain Technology is currently being fined a substantial amount of almost 25 million yuan (equivalent to over $3.6 million at the current exchange rate) by the taxation bureau of Beijing. It has been reported that Bitmain did not properly deduct and remit individual income tax on employee benefits, including travel subsidies. 

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As per the Tax Collection and Administration Law of the People’s Republic, the amount owed exceeds 16.6 million yuan (over $2.4 million). As per the publication, Bitmain was informed of its duties by the Beijing tax authority in August 2022. Despite this, the company has not yet fulfilled its obligation to withhold and pay the personal income tax mentioned earlier, as stated by Sina Finance.

Wu Blockchain highlighted in a follow-up tweet that the Chinese government has increased its tax audits on the cryptocurrency sector since the previous year. The crypto blogger further added that bitcoin miners and prominent cryptocurrency traders have been specifically singled out for scrutiny.

After China’s clampdown on cryptocurrency mining in early 2021, Bitmain disclosed in October of the same year that it would halt the shipment of mining equipment to customers located in the mainland. The Beijing-based company, which designs application-specific integrated circuit (ASIC) mining rigs, is said to be considering shifting the majority of its production to other regions, according to media reports.

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