China Conducts Tax Inspection On Cryptocurrency Mining Farms In The Country
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China Conducts Tax Inspection On Cryptocurrency Mining Farms In The Country

The Chinese government was recently involved in an inspection on Cryptocurrency mining farms in Xinjiang and Guizhou provinces. According to reports from the local media, the government was conducting real-name registration checks and tax inspection. Bitmain has not said whether these activities have affected its operations.

Strict Tax Inspection On Crypto Mining Companies

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China is planning to be collecting tax from the Crypto mining farms in the country. Cong News, a local news outlet recently reported that government officials have visited various mining facilities in Xinjiang and Guizhou. The government used the opportunity to conduct real-name registration checks. The use of real names is expected to enable the government to fight money laundering.

Furthermore, the government also took the chance to conduct tax inspections. The local daily elaborated that there were checks on customer information, funds, and mine’s tax information. The news outlet also reported that the exercise has been completed with the mining farms and government entering into an agreement.

During this inspection, the Cryptocurrency mining farms agreed to the government’s terms that they will implement a real-name system as required by the country’s Public Security Department. According to the agreement, the miners admitted that they will be dealing with customers who fail to comply with these new rules.

The Impact Of The Operation On Bitmain

Cong News reported that the operation had disrupted Cryptocurrency mining in the affected two provinces. Recently, Bitmain, the world’s largest altcoin mining firm moved 90,000 S9 Antminer rigs to Xinjiang province. The company’s co-founder and co-CEO Jihan Wu has not said whether this operation has affected their activities in the region.

Recently, Bitmain has been active to maintain its status as the dominant Cryptocurrency mining company. The firm moved the new machines to Xinjiang province in preparation for the Bitcoin Cash hard fork. The firm filed for an IPO in Hong Kong in September 2018, with a valuation of about $3 billion. Before the end of this year, the company is expected to report revenue of around $10 billion. The Crypto mining giant is now valued at $10 billion.

Bitmain has been experiencing increasing pressure from Bitfury. The company is now preparing for an initial public offer (IPO) to match the financial muscle of the world’s leading Cryptocurrency mining firm, Bitmain. The IPO will take place as early as next year in London or Amsterdam.

If the Amsterdam-based blockchain startup’s IPO takes place as planned, it will be the first major virtual currency IPO listed Europe. Furthermore, it will see the firm seek a valuation of between $3 billion to $5 billion. The IPO will give the company the funds needed to compete with Bitmain.

New York To Have The Biggest Bitcoin Mining Center

American firms have come forward to disrupt China’s dominance in Crypto mining. Coinmint is planning to spend up to $700 million in a project that is expected to become the largest Bitcoin mining center in the world. The Crypto mining firm will put the 435-megawatt capacity facility in Upstate New York.

The company will sit in a 1,300-acre land that previously hosted an aluminum smelting facility by Alcoa. So far, the Crypto mining firm has already invested $50 million in the project. The project is expected to be completed by June 2019 and will create around 150 new jobs.

November 14, 2018

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Samantha Mitchell


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