Bitcoin Mining Giant Bitmain Accused of Tax Evasion in China.
Bitmain, one of the largest Bitcoin mining companies in the world, has been accused of tax evasion in China. The accusation comes amid an ongoing crackdown on cryptocurrency mining in the country. The article discusses the allegations against Bitmain and the potential consequences of the investigation. Stay informed about the latest developments in the world of Bitcoin mining and cryptocurrency regulation.
Bitmain, a cryptocurrency mining corporation based in Beijing, has Accused of Tax Evasion in China, with local authorities issuing significant fines.
What is Bitcoin mining?
Bitcoin mining is the method by which transactions are digitally confirmed on the network of Bitcoins and added to the blockchain ledger. It is done by resolving complicated cryptographic hashing problems to validate the transactions added to a distributed blockchain ledger.
What firm is Bitmain Technologies?
Bitmain Technologies Ltd is a privately held Chinese firm founded by Micree Zhan and Jihan Wu in 2013 that develops application-specific integrated circuits (ASIC) devices for mining bitcoins.
Through its brand ANTMINER, BITMAIN is the world’s largest producer of digital coin mining servers, with a long history of worldwide market share and technological leadership, servicing customers in more than 100 countries and regions.
How much has Bitmain been penalized?
Bitmain Technologies has been penalized by the State Administration of Taxation’s Beijing Municipal Office. According to the report, the authority punished Bitmain with around 25 million Chinese Yuan ($3.7 million), using information from China’s data registry of private and public firms, Qichacha.
Why is Bitmain imposed with Taxes?
Bitmain was sanctioned on April 4, 2023, for allegedly failing to pay personal income taxes following China’s tax-collecting legislation. In addition, the statement explicitly mentioned certain infractions involving taxes on income from Bitmain employees’ salaries, bonuses, labor dividends, allowances, and other benefits.
The tax authority further stated that in August 2022, tax inspectors served Bitmain with a notice for certain tax irregularities. So far, Bitmain’s Beijing unit still needs to pay 16.6 million yuan ($2.4 million) in personal income tax.
What is Bitmain’s response to Cointelegraph?
In reaction to the Chinese government’s sweeping ban on cryptocurrency enacted in September 2021, the company was reportedly compelled to cease operations in China in October 2021. However, since Bitmain did not immediately respond in Accused of Tax Evasion in China to Cointelegraph’s request for comment, how the company has been operating needs to be clarified.
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