In August 2022, Chinese authorities reportedly issued Bitmain a notice regarding its tax violations.
Bitmain, a leading cryptocurrency mining firm based in Beijing, has allegedly violated Chinese tax regulations, resulting in a substantial fine imposed by local authorities.
On April 11th, local news outlet Sina Finance reported that the Beijing Municipal Office of the State Administration of Taxation issued a tax penalty to Bitmain Technologies.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
What is Impermanent Loss in Crypto? (Explained With Animations)
According to data from Qichacha, China's data registry for private and public companies, the penalty amounts to approximately 25 million Chinese yuan, or $3.7 million.
The data indicate that Bitmain received the penalty on April 4th for failing to pay personal income taxes in compliance with China's tax collection laws. The tax authority cited violations related to taxes on Bitmain employees' income, including salaries, labor dividends, bonuses, allowances, and more.
Furthermore, the tax authority reported that it had delivered Bitmain a notice regarding certain tax violations in August 2022. To date, Bitmain's Beijing unit has not paid a personal income tax of 16.6 million yuan, or $2.4 million.
In response to China's blanket ban on cryptocurrencies in September 2021, Bitmain reportedly ceased operations in China in October 2021. Therefore, the company's current operational status in China remains unclear.
The company has not issued any comment regarding the matter.
In other Bitmain-related news, one of the largest crypto mining firms in the United States, Core Scientific, sought to sell $6.7 million in Bitmain coupons. The move to sell Bitmain coupons came a few months before they were set to expire somewhere between March and April 2023.
