China persists as Bitcoin mining giant despite crypto ban – CryptoQuant

China
continues
to

control
55%
of
the
global

Bitcoin
network’s
hashrate,
despite
a
ban
on
crypto
mining
and
trading
that
has
been
in
effect
since
2021.

According
to

CryptoQuant
data,
the
country’s
significant
presence
in
Bitcoin
mining
persists,
but
its
dominance
is
now
being
challenged
as
other
countries,
such
as
the
US,
increase
their
share
of
hashrate.

CryptoQuant
CEO

Ki
Young
Ju
noted
that
US
mining
pools
account
for
approximately
40%
of
the
Bitcoin
network’s
hashrate.
This
share
predominantly
represents
institutional
miners,
who
leverage
advanced
technology
and
resources
to
maintain
their
competitive
edge.

In
contrast,
Chinese
mining
pools
continue
to
support
smaller
players
in
the
region,
demonstrating
resilience
despite
ongoing
legal
restrictions
on
crypto
activities.

China’s
strict
ban

China’s
current
stance
on
crypto
is
among
the
strictest
globally.
The
country
first
took
action
in
2017,
banning
Initial
Coin
Offerings
(ICOs)
and
shutting
down
domestic
exchanges.
This
move
was
followed
by
its
2021
ban
on
mining
and
trading.

The
crackdown
aimed
to
curb
the
financial
and
environmental
risks
associated
with
digital
assets.
However,
the
decentralized
nature
of
Bitcoin
has
allowed
miners
to
find
ways
around
the
restrictions,
maintaining
China’s
outsized
influence
over
the
global
Bitcoin
network.

Additionally,
underground
crypto
trading
markets
continue
to
thrive
in
the
country
via
VPNs
and
social
media
platforms,
with
the
latest
estimates
placing
the
annual
volume
of
crypto
transactions
in
China
at

roughly
$86
billion.

In
parallel,
the
country
has
explored
alternatives
like
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
like
Bitcoin.

Calls
for
change

Meanwhile,
industry
leaders
like
Tron
founder

Justin
Sun
have
urged
China
to
rethink
its
policies
on
digital
assets,
particularly
as
the
US
positions
itself
as
a
global
leader
in
crypto
under
former
President

Donald
Trump’s
pro-Bitcoin
agenda.
Sun
argued
that

fostering
competition
between
China
and
the
US
in
crypto
policy
could
drive
significant
advancements
in
the
industry.

Meanwhile,
there
are
indications
that
China
may
be

softening
its
stance
on
crypto,
particularly
with
its
growing
interest
in
blockchain
technology
and
potential
regulatory
changes.

Recent
reports
suggest
that
China
could
consider
revising
its
strict
crypto
regulations,
especially
in
light
of
its
actions
in
Hong
Kong,
which
is
positioning
itself
as
a
burgeoning
crypto
hub
with
implied
support
from
Beijing.

While
the
official
stance
remains
stringent,
these
developments
point
to
a
possible
shift
in
China’s
regulatory
approach
toward
cryptocurrencies
in
the
future.
However,
concrete
changes
have
yet
to
be
announced.

Mentioned
in
this
article