Cryptocurrencies

China retains 55% control of Bitcoin hashrate despite mining ban

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Despite a nationwide ban on cryptocurrency mining and trading in 2021, China continues to control over 55% of the global Bitcoin (CRYPTO:BTC) hashrate.

This figure comes from Ki Young Ju, CEO of CryptoQuant, who shared the data in a September 23 post.

According to Ju, Chinese mining pools still dominate, although U.S. mining pools are gaining ground, managing around 40% of the network.

The ban has not completely driven Chinese miners out of the market.

Many have found ways to continue operating within the decentralised Bitcoin network.

"Chinese mining pools support smaller miners in Asia, while U.S. pools cater mainly to institutional miners in America," Ju explained.

Bitcoin mining remains under scrutiny in China as the country prepares to revise its Anti-Money Laundering (AML) regulations in 2025.

These new rules are expected to extend to cover cryptocurrency transactions, addressing the rising risks associated with money laundering through decentralised platforms.

Despite the ban, there are reports suggesting that China may ease its stance on cryptocurrencies.

Galaxy Digital CEO Mike Novogratz recently shared that China might "unban" Bitcoin by late 2024, sparking speculation about regulatory shifts.

However, Bitcoin miners globally are facing a downturn.

In August 2024, miner revenue dropped to $827.56 million, the lowest monthly figure in a year, according to Bitbo data.

The decline in revenue, down over 10% from July, has placed additional pressure on miners worldwide, especially as Bitcoin prices hovered around $25,000 throughout the month.

At the time of writing, the Bitcoin price was $62,984.31.

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