According to reports from China, Bitmain, one of the leading mining equipment manufacturers, has been fined 25 million yuan ($3.7 million) by local authorities for tax evasion.
The Beijing Office of the State Administration of Taxation imposed the fine on Bitmain Technologies for failing to pay personal income tax, which applies to the income received by the company’s employees.
The tax department had previously notified the company of the violations in August 2022, and the unpaid fees totaled $2.4 million.
Bitmain Technologies, founded in 2013, produces mining equipment and is also involved in independent cryptocurrency mining.
Like other businesses in the industry, Bitmain’s operations were affected by the 2021 mining ban in China.
Despite this setback, the company introduced an upgraded S19j Pro+ ASIC miner in January that boasts a power output of 122 Tx/s.
Subsequently, reports emerged that Iris Energy, a mining company, had purchased 44,000 devices from Bitmain.
The tax evasion fine imposed on Bitmain is another blow to the company’s business operations.
However, it is expected to continue to develop and innovate in the mining equipment industry, despite ongoing regulatory challenges.