Cryptocurrency mining companies in China close for "severe" tax inspections


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Cryptocurrency mining operations in the Chinese provinces of Xinjiang and Guizhou were suspended so that the government could conduct "very stringent" tax inspections and verification of the registration of real names.

The power of the mines was discontinued on 5 November, according to sources from the local newspaper Cong News. As a result, the mines lost about 1 million yuan (or about $ 143,700) a day during the "rectification" period.

"Joint control actions looked at tax information, funds and information on mine customers," said Cong News. "It is understood that the tax inspection of the mine is very strict".

Mining farms required to sign commitment

The tax inspection is now complete, but it is unclear whether the power of the mines has been restored.

"It is understood that mines, including commercial licenses, state-of-the-art feeding procedures and employee social security, are officially complete," noted Cong News.

Mining companies were asked to sign an agreement promising that their mining data centers would implement "higher standards for the company's real business system," as requested by the Chinese Public Security Department.

The farms have also agreed not to provide services to customers who do not comply with these rules.

Has the arrest affected Bitmain?

It is not clear how this crash hit Bitmain, which has recently deployed 90,000 rig S9 Antminer in the Xinjiang-rich coal region before the bitcoin bitcoin Cash Bitcoin, scheduled for November 15th.

Bitmain, the most valuable cryptocurrency company in the world, is making strides to maintain market dominance in the news that its smallest rival Bitfury is considering an initial public offering in Amsterdam or London as early as 2019.

The move would make Bitfury the first major encrypted IPO listed in Europe, as reported by CCN. The Amsterdam-based blockchain startup may require a valuation of $ 3 billion to $ 5 billion.

In September 2018, Bitmain presented an initial public offering in Hong Kong, with a potential valuation of up to $ 3 billion. Bitmain – which has a value of $ 10 billion – is about to register revenue of $ 10 billion by the end of 2018.

$ 700 million Bitcoin Mining Farm under construction

Meanwhile, the Coinmint encryption company plans to invest up to 700 million dollars to build the world's largest bitcoin mining center in Upstate New York, with a capacity of 435 megawatts.

Coinmint has already invested $ 50 million so far to convert a 1,300-acre Alcoa aluminum smelter plant Massena, New York.

It is expected that the new mining crypt will create about 150 new jobs and should be fully operational by June 2019.

The old Alcoa plant was closed in 2014, but Coinmint signed a ten-year lease on the property, signaling its confidence that despite the recent collapse of bitcoin, he believes cryptocurrencies are here to stay.

"As long as bitcoin networks exist, we expect the mining sector to be profitable," said Coinmint CTO Prieur Leary.

Shutterstock foreground image.

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