China Shuts Down Cryptocurrency Mining Farms For Strict Tax Inspections. The Chinese government has suspended cryptocurrency mining operations in the provinces of Xinjiang and Guizhou to conduct “very strict” tax inspections and real-name registration checks.
Power was cut off to the mining farms on November 5, as reported in the Chinese local daily Cong News. As a result, the mines lost about 1 million yuan (or roughly $143,700) a day during the period of “rectification.”
Cong News also reported that the joint enforcement actions examined the mine’s tax information, funds, and customer information. The tax inspection of the mine was conducted very strictly.
Even though the tax inspection has now been completed, it remains unclear whether or when the mining farms can resume mining again.
All the mining farms were required to undergo an agreement and guarantee that their mining data centers will implement “higher standards for the company’s business real-name system,” under the domain of China’s Public Security Department. The farms consented to not provide services to any customers that do not conform to these standards.
China Shuts Down Cryptocurrency Mining Farms For Strict Tax Inspections. It is not clear how this shutdown influenced Bitmain. It recently deployed 90,000 S9 Antminer rigs to the coal-rich region of Xinjiang ahead of the Bitcoin Cash hard fork. However, this is scheduled for November 15. Bitmain, the world’s most important cryptocurrency company, is making moves to keep up its market strength. In September 2018, Bitmain filed for an IPO in Hong Kong, with a potential valuation of up to $3 billion. Bitmain, which is currently valued at $10 billion, is on track to post $10 billion in revenue by the end of 2018.