• China has sanctioned the Bitcoin mining company Bitmain Technologies for alleged tax violations, fining it 25 million Chinese yuan ($3.7 million).
• In response to the Chinese government’s blanket ban on cryptocurrency imposed in September 2021, Bitmain was reportedly forced to cease operations in China in October 2021.
• Despite falling mining profitability, Bitmain’s latest Antminer device reportedly sold out in less than a minute in December 2022 and founder Jihan Wu established a $250 million fund to assist the mining industry affected by the prolonged crypto winter.
China Sanctions Bitcoin Mining Company Bitmain Technologies
Tax Violations Alleged
The Beijing Municipal Office of the State Administration of Taxation recently fined Bitcoin mining company Bitmain Technologies approximately 25 million Chinese yuan ($3.7 million) for alleged tax violations. According to the regulator statement, these violations involve salaries, bonuses, labor dividends and allowances of Bitmain employees which have been unpaid since August 2022.
Bitmain Forced To Cease Operations In China Following Crypto Ban
Founded in 2013, Bitmain is one of the world’s largest cryptocurrency mining companies known for producing crypto mining-specific hardware and services. In response to the Chinese government’s blanket ban on cryptocurrency imposed in September 2021, Bitmain was forced to cease operations in China in October 2021 due to regulatory uncertainty amidst a major bearish sentiment in the crypto market at that time.
Bitmain Continues To Thrive Despite Regulatory Uncertainty
Despite this ban and falling mining profitability across the industry, Bitmains‘ enterprise has continued to thrive with its latest Antminer device reportedly selling out in less than a minute during December 2022 as well as its founder Jihan Wu establishing a $250 million fund that same month to assist miners affected by this prolonged crypto winter period.
Chinese Authorities Crack Down On Bitcoin Mining Firm Despite Its Ongoing Success
It is amidst these circumstances that Chinese authorities have cracked down on the mining firm Bitmain with their recent sanctioning and fine of 25 million Chinese yuan ($3.7 million). It remains unclear how exactly Bitmains‘ operations have continued despite this ban but it is clear that both its enterprise and influence will remain strong for some time yet despite ongoing regulatory uncertainty surrounding cryptocurrencies within China’s borders.