Bitmain Crypto Mining Rig Manufacturer Slapped with $3.6 Million Fine by Chinese Authorities Over Tax Evasion

China’s Beijing tax authorities have fined Bitmain, one of the world’s largest manufacturers of cryptocurrency mining rigs, a whopping $3.6 million for tax violations.

The Beijing branch of the State Taxation Administration issued a notice on April 4, stating that Bitmain had failed to comply with personal income tax regulations.

Despite receiving a notice in August 2020, the company failed to withhold and pay around 16.6 million yuan in personal income tax. Bitmain is yet to respond to requests for comment from Forkast.

Founded in 2013, Bitmain is renowned for its Antminer series, and on Tuesday, CleanSpark, a US crypto miner listed on Nasdaq, revealed that it had acquired 45,000 new Antminer S19 XP units for $144.9 million to double its current Bitcoin mining capacity. Bitmain is expected to deliver all the units by the end of September.

The Beijing tax authorities’ decision comes amid China’s increasing scrutiny of the cryptocurrency industry, with the government issuing warnings to miners about their energy consumption and environmental impact.

The move is part of Beijing’s push towards carbon neutrality, and with tax authorities now cracking down on tax violations, the regulatory scrutiny is set to continue.