China’s Yunnan Province Shuts Down and Inspects Bitcoin Mining Farms for Tax Purposes
Tax authorities in China conducted “very strict” tax inspections and registration checks of cryptocurrency mining operations in the Xinjiang and Guizhou provinces. Before the inspection, authorities ordered that power be shut off to the operation. The shut-down and lack of power costs the mining companies around 1 million yuam, or $143,700.
According to Cong News, which reported on the inspection, “joint enforcement actions examined the mine’s tax information, funds, and customer information.” Even though the inspection has come to an end, the mining operations have not been permitted to continue conducting business.
Further, officials required farm owners to sign agreements that the operations would implement “higher standards for the company’s business real-name system.”
Another question that arises in relation to the shut down is whether it affected Bitmain, which recently provided 90,000.59 Antminer rights to the Xinjiang region right before Bitcoin Cash’s hard fork. The hard fork is scheduled for November 15. There are those who speculate that Bitmain’s actions are an attempt to maintain market dominance and to overcome smaller entities, such as Bitfury, which is currently planning in ICO in Europe. If Bitfury’s ICO is successful, it will be one of the first listed in Europe.
Bitmain, on the other hand, seems to be domineering over Asian markets. It held an IPO in Hong Kong recently and it is managing to accumulate more revenue as well.
Outside of Asia and Europe, another company – Coinmint, is working to develop a mining center in Upstate New York. With regulations in place though, it is not clear how well the venture will proceed. If successful, the mining farm may create around 150 jobs and will be completely operational by summer of 2019. According to Prieur Leary of Coinmint, “As long as bitcoin networks exist, we anticipate mining to be profitable.”