Beijing-Based Bitmain Fined $21 Million for Tax Evasion, Pledges to Rectify Situation

Beijing-based Bitcoin mining company Bitmain is facing fines after allegedly breaching tax regulations, according to local authorities.

The Beijing Municipal Bureau of Local Taxation announced on Monday that it had fined Bitmain 137.4 million yuan ($21 million) for unpaid taxes and fines related to value-added tax and corporate income tax.

The investigation found that Bitmain had avoided paying taxes by falsely reporting profits from 2017 to 2018, resulting in a shortfall of approximately 100 million yuan ($15 million) in taxes.

In response, Bitmain issued a statement acknowledging the fine and promising to rectify the situation.

"We apologize for our mistakes and will take immediate steps to rectify the situation," the statement read. "We remain committed to complying with all relevant laws and regulations in all jurisdictions in which we operate."

This is not the first time Bitmain has been in trouble with the law. In 2018, the company faced a lawsuit over allegations of patent infringement, and in 2019, it was hit with a class-action lawsuit over allegations of price-fixing.

The news comes amid a crackdown on the cryptocurrency industry in China, with the government imposing strict regulations on Bitcoin mining and trading. The move has caused several mining companies to shut down or move their operations overseas.

Despite the regulatory challenges, Bitcoin continues to enjoy popularity in China, with many investors viewing it as a hedge against inflation and a store of value. However, the recent crackdown has caused a drop in Bitcoin's value, with the cryptocurrency currently trading at around $56,000, down from its all-time high of over $64,000 in mid-April.