China’s leading cryptocurrency mining rig manufacturer, Bitmain, has been fined nearly 25 million yuan (US$3.6 million) for violating personal income tax regulations, according to the Beijing branch of the State Taxation Administration.
The authority issued a notice to Bitmain in August 2020, citing the company’s failure to comply with tax regulations, but Bitmain did not withhold or pay the personal income tax amounting to about 16.6 million yuan. Bitmain, which is renowned for its Antminer series, did not respond to requests for comment.
The Beijing State Taxation Administration fined Bitmain on April 4, 2021, for its alleged tax violations. While the Chinese government has been cracking down on cryptocurrency mining and trading, it has also been taking a hardline approach to tax violations by companies operating in the crypto industry.
This latest fine against Bitmain is part of China’s ongoing efforts to tighten regulations around the cryptocurrency industry.
Bitmain, which was founded in 2013, is one of the largest producers of cryptocurrency mining rigs in the world. The company has faced a few setbacks in recent years, including the resignation of its co-founder, Jihan Wu, in 2019, and a legal dispute with former employees over allegations of violating non-compete clauses.
However, the company remains a major player in the industry and continues to supply mining rigs to businesses globally.
Despite the regulatory challenges faced by Bitmain and other cryptocurrency-related companies in China, the global cryptocurrency mining market continues to thrive.
On Tuesday, CleanSpark, a US-listed crypto miner, announced that it had purchased 45,000 new Antminer S19 XP units from Bitmain for $144.9 million. The acquisition is expected to double CleanSpark’s current Bitcoin mining capacity, with all units scheduled for delivery by the end of September.
