Major cryptomining hardware maker Bitmain is reportedly considering a nearly $4 million fine for unpaid taxes in Beijing.
According to a report by local news agency Sina Finance, Bitmain failed to pay income taxes as required by Chinese tax laws.
As such, the Beijing Municipal Office of the State Tax Administration fined the company nearly 25 million yen, or $3.63 million, citing Qichacha, a state-run data registry of private and public companies.
On April 4, Bitmain was fined for allegedly violating China’s tax law on employee income, including salaries, bonuses, allowances, labor dividends and other related items.
The company has reportedly faced similar problems with this particular body in the past, and was approached for tax violations in August last year.
Bitmain has so far failed to pay about ¥16.65 million (equivalent to $2.42 million) in personal income tax.
Bitmain has faced problems with the country’s regulatory authorities on several fronts since its inception in 2013.
In an important twist, it was allegedly forced to cease operations in China in 2021 following the government’s ban on cryptocurrency imposed in September of that year.
In June of that year, Bitmain told the local mining community that it had stopped selling new hardware after prices for its top-tier rigs fell by around 75% since April.
Reports claim that delaying sales could potentially help miners exit the industry, allowing them to get better prices for their machines, while also benefiting Bitmain if supply cuts lead to higher prices for new machines in the long run.
However, at the end of 2022, just four months ago, the company announced that it sold out of its latest Antminer device “in just 27 seconds.”
Early last year, in July, Bitmain announced the start of sales of its latest Ethereum (ETH) mining rig, the AntMiner E9, even as Ethereum developers were preparing for the blockchain’s transition to proof-of-stake ( PoS ).
Mining facility operators have also reported their buy-sell agreements with Bitmain over the past year.
Just yesterday, Bitcoin miner CleanSpark announced the purchase of 45,000 new Antminer S19 XP mining machines for a total price of $144.9 million.
All devices are expected to be ready for manufacturer shipment by the end of September, and once deployed, will increase the company’s current hashrate by 95%, the company said.
