China Remains a Bitcoin Mining Giant Despite Crypto Ban – CryptoQuant
China still controls 55% of the global Bitcoin network hashrate, despite a ban on cryptocurrency mining and trading that has been in place since 2021.
According to CryptoQuant data, Vietnam still has a significant presence in the Bitcoin mining space, but its dominance is under threat as other countries, including the United States, increase their hashrate share.
CryptoQuant CEO Ki Young Ju noted that US mining pools account for around 40% of the Bitcoin network hashrate. This share primarily represents institutional miners, who use advanced technology and resources to maintain a competitive edge.
Meanwhile, Chinese mining pools continue to support smaller players in the region, demonstrating resilience despite ongoing legal restrictions on cryptocurrency activity.
China’s strict ban
China’s current stance on cryptocurrencies is one of the strictest in the world. The country first took action in 2017, banning ICOs (Initial Coin Offerings) and shutting down domestic exchanges. This was followed by a ban on mining and trading in 2021.
The crackdown was aimed at curbing the financial and environmental risks associated with digital assets. However, the decentralized nature of Bitcoin allowed miners to find ways to circumvent the restrictions, maintaining China’s enormous influence over the global Bitcoin network.
Additionally, the underground cryptocurrency trading market via VPNs and social media platforms continues to thrive in China, with recent estimates suggesting that annual cryptocurrency trading volume in China is around $86 billion.
At the same time, China has explored alternatives such as the digital yuan, a central bank digital currency (CBDC) controlled by the People’s Bank of China (PBoC). The digital yuan is part of China’s broader strategy to maintain financial control while limiting the influence of decentralized cryptocurrencies such as Bitcoin.
demand change
Meanwhile, industry leaders like Tron founder Justin Sun have urged China to rethink its policies on digital assets, especially as the United States has positioned itself as the global leader in cryptocurrencies, following former President Donald Trump’s pro-Bitcoin agenda. Sun argued that encouraging competition between China and the United States on crypto policies could lead to significant progress in the industry.
Meanwhile, there are signs that China may be softening its stance on cryptocurrencies, particularly given growing interest in blockchain technology and potential regulatory changes.
Recent reports suggest that China may be revising its strict cryptocurrency regulations, especially in light of the actions taken in Hong Kong, which is positioning itself as a fast-growing cryptocurrency hub with Beijing’s tacit support.
While the official stance remains strict, these developments suggest a possible shift in China’s regulatory approach to cryptocurrencies in the future. However, no specific changes have been announced yet.
