Bitcoin Miner Bitmain Fined by Chinese Authorities

The Bitcoin (BTC) mining company Bitmain broke Chinese tax laws for which the local government has reportedly levied heavy fines.

According to a report from the regional news source Sina Finance on April 11, Bitmain Technologies has received a penalty fee from the Beijing Municipal Office of the State Administration of Taxation.

In accordance with the source, which quotes information from China’s data register of private and public firms, Qichacha, the regulator penalized Bitmain roughly 25 million Chinese yuan ($3.7 million).

Bitmain Fined on April 4

The information indicates that Bitmain was fined on April 4, 2023 because it is revealed that the company did not pay taxes on personal income in line with Chinese regulations governing the administration of tax collection. 

The claim explicitly mentioned several tax infractions involving wages, bonuses, and labor dividends for Bitmain workers, and more.

The tax authorities further stated that Bitmain received notification in August 2022 from tax investigators regarding specific tax irregularities. As of now, 16.6 million yuan ($2.4 million) worth of personal income tax has not been paid by Bitmain’s Beijing branch.

One of the largest producers of mining devices, Bitmain is a sizable company that constructs the necessary infrastructure for cryptocurrency mining.

A report claims that the Bitcoin mining firm was subject to a blanket ban on all cryptocurrency-related activities in China as a result of the local government’s imposition of the ban in September 2021. However, Bitmain has thrived despite a large bear crypto market in 2022 and regulatory uncertainties.

Public Bitcoin (BTC) mining businesses had a particularly difficult time due to the sector being saddled with a $4 billion debt as a result of taking out large loans during a bullish 2021 market as opposed to a bearish 2022 market. 

In addition, a February update on BTC.com showed that the most recent market adjustment has caused the mining difficulty for Bitcoin to increase by 9.95%.