April 18, 2023
By Anjali Kochhar
Bitmain, a prominent manufacturer of hardware for mining cryptocurrencies, has been fined for tax violations by Chinese authorities, according to reports in local media. The fine is part of an increased focus on tax enforcement in the digital asset sector.
Chinese crypto journalist Colin Wu, also known by his Twitter handle ‘Wu Blockchain’ tweeted about the same quoting the report.
Beijing Bitmain Technology is reportedly facing a substantial penalty of over $3.6 million for failing to withhold and pay personal income tax on benefits given to its employees.
In a subsequent tweet, Wu Blockchain pointed out that the Chinese government has stepped up tax inspections on the cryptocurrency industry since last year. According to the crypto blogger, bitcoin miners and large cryptocurrency traders have been specifically targeted.
The company was informed of its obligations in August 2022 but has not yet paid the outstanding amount. Since last year, the Chinese government has been conducting more tax inspections on the cryptocurrency industry, targeting bitcoin miners and large cryptocurrency traders.
Bitmain had previously announced its decision to stop delivering mining equipment to customers in China following the country’s crackdown on crypto-related activities in early 2021.
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.