“Back in the game! Bitcoin mining in China is experiencing a significant and unexpected resurgence despite a strict ban imposed by Beijing in 2021. Although domestic mining has been forced to relocate, its share of the world’s hashrate—the computing power allocated to the security of the Bitcoin network—has rebounded, indicating an underground and clearly growing activity. This difficult situation, about […]”, — write: businessua.com.ua
Back in the game! Bitcoin mining in China is struggling a significant and unexpected resurgence despite a strict ban imposed by Beijing in 2021. Although domestic mining has been forced to relocate, its share of the world’s hashrate—the computing power allocated to the security of the Bitcoin network—has rebounded, indicating an underground and clearly growing activity. This complex situation, reported by Reuters, calls into question the effectiveness of regulation and the long-term strategy the Chinese government regarding this digital asset.
Key points of this article:
- Bitcoin mining in China has experienced an unexpected resurgence despite a strict ban imposed by Beijing in 2021.
- China once again became the third largest country in the world in terms of hash rate, using the energy resources of remote regions.
China, the third largest player in the global bitcoin hashrate, two years after the ban Ban 2021 sought to end mining operations in China, citing financial concerns stability and consumption energy Initially successful, this measure resulted in China’s market share falling to almost zero. However, recent data, including Hashrate Index figures published by Reuters, suggest that China returned to third place in the world having approx 14% from the total hashrate market until the end of October 2025.
It Renaissance caused mainly by a combination of two factors: a large amount and low cost of electricity in remote areas. In provinces such as Xinjiang and Sichuan, excess energy which cannot be transported to other regions, is used by miners, both individuals and companies. Economic the incentive is significant: “A lot of energy cannot be transported outside of Xinjiang, so it is consumed in the form of cryptomining,” – said the private miner Reuters agency . Activity shifted to energy-rich internal areas which illustrates the difficulty of eradicating highly profitable activities.
The recovery is also supported by manufacturers’ sales data mining equipment. According to company documents seen by Reuters, the share of Canaan Inc., a major player in the sector, in global revenue from China grew from 2.8% in 2022 until 30.3% last year
What if China went back to Bitcoin mining? – Source: Account X
Between Implicit Regulatory Flexibility and Economic Strategy Branches sources even suggest growth over 50% in the second quarter of this year. These data show not only about the opportunism of miners but also about hidden tolerance or negligent enforcement of the ban by local authorities.
According to Patrick Grune, CEO of Perpetuals.com, “China’s policy flexibility arises when economic incentives are strong in certain regions.” Bitcoin mining, although officially banned, appears to benefit from a form of unrecognized condescension . This covert activity is reinforced by other signals from Beijing including Hong Kong’s stablecoin legislation and China’s consideration of allowing yuan-backed stablecoins to drive international adoption of its currency, which was also reported Reuters in August
According to some observers, this renewed activity can not only to support demand for Bitcoin, but also reflect a slight change in Beijing’s perception of digital assets. Although mining is still officially banned, CryptoQuant estimates that Chinese mining activity is 15-20% from the global indicator. As one legal expert points out, “Government policy on mining will be gradually loosened, as it is simply impossible to completely stop such activity.”
The return of Bitcoin mining in China, albeit underground, is a powerful signal to the global market. It demonstrates the industry’s resilience in the face of regulatory edicts and highlights the contradictions between Beijing’s goals for centralized control and powerful regional economic incentives. This quiet but notable recovery allows China to maintain significant influence over the Bitcoin ecosystem, marking a chapter in cryptocurrency history where bans are circumvented at the expense of clean energy and profit.
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Source: journalducoin.com
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