Bitmain, the world’s largest bitcoin mining machine company, has been hit with a hefty fine of about $3.55 million by the Fourth Inspection Bureau of the Beijing Municipal Taxation Bureau due to tax violations, according to a report from a local media outlet.
According to the “Tax Collection and Administration Law of the People’s Republic of China”, the unit shall withhold and pay individual income tax for benefits such as travel subsidies to employees. Bitmain was delivered a “Notice of Order to Correct Within a Deadline” in August 2022, but has failed to withhold and pay the personal income tax amounting to about $2.4 million so far.
Bitmain, being headquartered in Beijing, has been designated to design application-specific integrated circuit (ASIC) chips for Bitcoin mining, making it one of the most well-known companies in the crypto space. Though, despite the fine, the company’s finances are unlikely to be severely impacted, the fine serves as a reminder that the scrutiny of the crypto industry in China is still very much present.
China has been known for taking a harsh stance towards cryptocurrencies, with media headlines repeatedly reporting on the banning of Bitcoin use in the country. This was accomplished by closing down cryptocurrency exchanges, which are the primary ways to buy or sell the assets outside of peer-to-peer trades. The latest fine against Bitmain only reinforces the need for companies to keep a close eye on their operations in China.
