China returns to being a giant in Bitcoin mining despite the 2021 ban

Source: PortaldoBitcoin Original Title: China returns to being a giant in Bitcoin mining despite the ban of 2021 Original Link: China has once again become one of the most important hubs for Bitcoin mining, following the ban on the activity in 2021. Data from the Hashrate Index shows that the Asian giant currently holds 14% of the market, ranking third, with this index having reached zero in the past.

Another piece of data that shows this recovery in China is that the country accounted for 30% of Canaan's 2024 sales, the second largest manufacturer of Bitcoin mining machines in the world. In 2022, this number was at 2.8% and internal sources from the company reported that in 2025, China will be responsible for more than 50% of the company's sales.

Reinforcing these numbers, a report from CryptoQuant, an on-chain analytics firm, estimates that between 15% to 20% of the global Bitcoin mining capacity currently operates in China.

China Reapproaches Cryptocurrencies

The reasons for China's resurgence as a leader in mining are macroeconomic (record BTC prices this year and tariff uncertainty) as well as a general perception that the Chinese government has adopted a more lenient attitude towards cryptocurrencies.

Two examples of this behavioral change involve cryptocurrencies backed by fiat currencies. The first is that Hong Kong's stablecoin law came into effect in August, allowing the Chinese city to compete with the US in creating a regulated market for fiat-backed cryptocurrencies.

Moreover, sources familiar with the subject claim that China is considering allowing the use of yuan-backed stablecoins to boost the global adoption of its currency and keep up with the advances of the U.S. in this sector.

A private miner in Xinjiang reported that he started mining at the end of last year because his region has a surplus of electricity production: “A lot of energy cannot be transmitted out of Xinjiang, so you consume it in the form of cryptocurrency mining,” he said.

The Chinese miner also stated that new mining projects are under construction. “What I can say is that people mine where electricity is cheap.”