China’s Bitcoin Mining Surges to 14% of Global Market Despite Official Ban: Report

Highlights:

• China’s Bitcoin mining grows again after years of ban and shutdown.
• Miners restart in Xinjiang and Sichuan using cheap electricity and extra power.
• Small policy easing and extra data centers boost Bitcoin mining activity.

China’s Bitcoin (BTC) mining activity has started growing again after a long shutdown. Four years have passed since Beijing ordered all miners to stop working. Recent data shows China has recovered fast and reached 14% of the global Bitcoin mining market by late October, as per a report from Reuters.

China was the world’s top mining hub until 2021, but many miners moved to North America and Central Asia after the ban. Most people thought the industry would never return. A new trend is now appearing in remote regions where electricity is cheaper and unused computing power is still available.

Hashrate Index data shows China has now reached the third position globally. The change is also clear from Canaan Inc.’s numbers. The company earned only 2.8% of its revenue from mainland China in 2022. That number climbed to 30.3% last year. Sources also say revenue in the second quarter of this year crossed 50%.

Reuters reports that Bitcoin mining has quietly resurged in China despite the 2021 ban, with the country now contributing about 14% of global hashrate, ranking third worldwide. Miners have re-emerged in low-cost, energy-surplus regions like Xinjiang and Sichuan, where new…

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Mining Activity Quietly Resumes in Xinjiang and Sichuan

A miner known as Wang was said to have restarted work in Xinjiang late last year. The province is known to produce more electricity than its grid can manage. He mentioned that extra energy is often used through crypto mining, and he added that new mining projects are already being built. He also said that people usually choose locations where electricity is cheap.

Officials from Xinjiang and the National Development and Reform Commission were reported to have given no reply about the renewed activity. People in the industry say operations are still quiet but steady in areas where extra energy has become a long-term issue. Sichuan was also said to have seen a new rise in mining. Duke Huang, who left the industry after the 2021 order, mentioned that many long-time miners in his circle had returned. He called the region sensitive and confirmed that miners with cheap electricity continue mining.

Beijing has not changed its original ban. Gruhn said even small signs of easing could help Bitcoin’s global story. Miners keep working within local tolerance and national limits. Hong Kong passed a stablecoin law in August to create a regulated market for fiat-backed digital assets. Reuters said China is exploring yuan-backed stablecoins to expand globally and respond to U.S. progress. Analysts see these as small but meaningful signs.

Canaan said its work follows China’s rules. The company stated that researching, making, and selling mining machines is allowed. Rising sales are linked to U.S. tariff uncertainty, higher Bitcoin prices, and changing views from Chinese authorities.

China’s Return Strengthens Bitcoin

CryptoQuant researcher Julio Moreno confirmed that mining is active in China. He said BTC mining is still banned, but 15% to 20% of global capacity is operating there. Liu Honglin from Man Kun Law Firm expects policies to ease gradually, as mining cannot be fully stopped. Enforcement differs by province, especially where electricity is abundant.

The production and sale of the machinery used in the mines are legal, while the mines themselves break national law. In areas where there is cheap electricity, the enforcement of the law can be relaxed. The miners are saying that the sector will continue until there are new directives from Beijing. The return of the Chinese miners boosts the value of Bitcoin.