Bitmain Hit With Massive Tax Fine As Chinese Government Cracks Down On Bitcoin Mining

Chinese Bitcoin mining machine company Bitmain has been hit with a hefty fine of approximately $3.55 million by the Beijing tax bureau. This follows several tax-related issues that the company has faced in the past, with the latest being mainly unpaid personal income taxes, according to a report.  

Since last year, the Chinese government has intensified its tax inspections of the cryptocurrency sector. The latest fine imposed on Bitmain emphasizes the importance for all enterprises operating in China to comply with the country’s tax rules and regulations.

Under the “Tax Collection and Administration Law of the People’s Republic of China,” the organization must deduct and remit individual income tax for perks such as travel subsidies provided to its employees. 

But Bitmain failed to withhold and pay the personal income tax, resulting in the penalty. The most recent development suggests that China’s government is firmly opposing tax avoidance in the cryptocurrency sector. The focus is particularly on Bitcoin miners and major traders.

NC County Considers Halting Bitcoin Mining Temporarily

Buncombe County in North Carolina is proposing to temporarily halt Bitcoin and cryptocurrency mining in the area for one year due to concerns about the impact on the environment and the community, according to another latest report.

The county’s ordinances do not specifically address cryptocurrency mining. The county commissioners have scheduled a public hearing for May 2 for community feedback on the proposed moratorium.

Similar concerns have been raised across the US. In addition, a Texas Senate committee recently passed legislation limiting energy agreements for Bitcoin mining.

Companies in the cryptocurrency industry need to be proactive about following rules. Due to governments’ increased attention, avoiding potential penalties and legal issues is crucial for companies in the cryptocurrency industry.

Related Reading | MetaMask Launches “Buy Crypto” Feature For Easier Fiat Purchases

The SEC issued a cease-and-desist order to US Bitcoin Inc. for issuing unregistered securities, which led to regulatory issues. Nonetheless, after adhering to the Commission’s rules, the company agreed to continue operations.

The company’s agreement to resume operations demonstrates the importance of complying with regulations. This is particularly important for companies operating in the cryptocurrency industry.