Chinese tax authority fines Bitmain about $3.6 million

The Beijing tax authority fined the cryptocurrency mining equipment manufacturer Bitmain 24.97 million yuan (~$3.63 million), according to Sina Finance.

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The fiscal authority found a number of violations at the company. The main charges concerned the non-payment of individual income tax on employees’ transportation subsidies.

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Under the law, Bitmain was obliged to withhold taxes on these benefits. The tax authorities calculated the amount at 16.65 million yuan (~$2.42 million).

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Since 2022, Chinese authorities have stepped up tax inspections of crypto-industry participants, especially bitcoin miners and large traders, noted journalist Colin Wu.

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The Chinese government has stepped up tax inspections on the cryptocurrency industry since last year, especially targeting bitcoin miners and large traders.

— Wu Blockchain (@WuBlockchain) April 11, 2023

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In September 2021, amid tightening government policy toward the crypto industry, media reported plans for Bitmain to halt sales of miners domestically and to relocate much of production abroad.

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Since then, prices for bitcoin miners have fallen severalfold. By the end of September, devices with 25-38 J/TH efficiency cost $98.8 per TH. In early April 2023, such installations were selling for $16 per TH (Hashrate Index).

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In March 2022, the largest manufacturer released to the market the ASIC-miner Antminer S19 XP Hyd with an efficiency of 21 J/TH. The price of such devices since launch has fallen by about half.

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In August 2022, Bitmain formed a strategic partnership with Antalpha for financial support for customers during the crypto winter.