China Reclaims Bitcoin Mining Ground Despite 2021 Ban

Key Takeaways

• Bitcoin mining in China has reemerged, making it the third-largest Bitcoin mining hub worldwide.
• Low electricity costs and a boom in data centers contribute to the revival.
• China accounts for 14% of the global Bitcoin mining market share as of October 2025.
• The country’s stance on digital assets is slowly shifting towards acceptance despite official policies.
• Canaan Inc., a leading mining rig manufacturer, experiences significant revenue growth attributed to Chinese demand.

WEEX Crypto News, 2025-12-08 07:32:00

The Resurgence of Bitcoin Mining in China

Once the epicenter of Bitcoin mining, China drastically altered the global mining landscape in 2021 when it declared a sweeping ban on cryptocurrency mining and trading. This decision sent shockwaves throughout the cryptocurrency world, displacing miners and altering the distribution of mining power across the globe. However, in a surprising twist of events, the robust mining industry in China has gradually reemerged, positioning the country once again as a significant player on the global Bitcoin mining stage.

According to a comprehensive report by Reuters, China now stands as the third-largest hub for Bitcoin mining, commanding 14% of the global market share by the close of October 2025. This development is quite remarkable considering that just a few years ago, China’s contribution had dipped to virtually zero following the stringent 2021 ban.

Understanding China’s Stance: From Ban to Resurgence

The reasoning behind China’s original crackdown on Bitcoin mining was multifaceted, primarily stemming from concerns about energy consumption and financial instability. Bitcoin mining is infamously energy-intensive, driven by the high computational power required to solve complex mathematical problems. With China’s heavy dependence on coal-based power, the environmental impact was significant, prompting authorities to put a stop to it in 2021.

Fast forward to today, the resurgence of mining activities indicates a nuanced shift in China’s approach. The government may still officially ban cryptocurrency mining, yet the practical landscape tells a different story. The lure of cheap electricity in energy-abundant regions, coupled with an increase in data centers, appears to be driving this revival.

In provinces rich in energy resources, particularly Xinjiang, the abundance of electricity that cannot be utilized elsewhere has resulted in an unofficial, yet thriving, crypto mining scene. Miners have cleverly exploited this excess power to operate data centers dedicated to mining, thereby bypassing formal restrictions.

The Role of Canaan Inc. in China’s Mining Re-Emergence

A significant player in this resurgence is Canaan Inc., the world’s second-largest manufacturer of cryptocurrency mining hardware. Spurred by the revived interest in Bitcoin mining, Canaan has seen its sales within China soar. By 2024, the company reported that over 30% of its global revenue came from China, a remarkable leap from a mere 2.8% in 2022. By Q2 2025, estimates suggested that Chinese sales contributed over half of Canaan’s overall revenue. Despite not verifying these figures directly, Canaan attributes this growth to several factors, including international tariff uncertainties under former President Trump and a subtle relaxation in China’s attitude towards digital currencies.

Canaan has made clear in its communications that all its business operations comply with existing national regulations. However, the influx of mining equipment into the market suggests a latent demand and a keen interest among Chinese entities to engage in mining, albeit discreetly.

China’s Subtle Shift Toward Digital Assets

While the revival of Bitcoin mining activities in China raises eyebrows, it is essential to recognize a broader context where China’s attitude towards digital assets seems to be evolving. In August 2025, reports emerged of China’s intention to launch its first fiat-backed stablecoin under Hong Kong’s licensing framework. This initiative reflects an ambition to extend the renminbi’s international influence and reduce dependency on the U.S. dollar.

This move does not overtly translate into an endorsement of Bitcoin, but it certainly signals an acceptance of digital currency frameworks, which could pave the way for a more open stance on blockchain technology and digital assets as a whole.

Industry experts, such as Julio Moreno from CryptoQuant, acknowledge the undeniable presence of significant Bitcoin mining capacity within China, despite official disapproval. CryptoQuant’s latest estimates suggest that China could account for as much as 15% to 20% of global Bitcoin mining activities, a testament to the resilience and ingenuity of Chinese miners.

The Future of Bitcoin Mining in China

Despite these optimistic signs, one must approach the situation with measured realism. While ground realities indicate a warming attitude towards some facets of digital currency, the Chinese government’s official policy maintains its stance against cryptocurrency activities. Thus, operational risks remain for miners who continue under the radar.

The renewed vigor of China’s mining sector suggests critical advancements in efficiency and adaptation strategies, where miners optimize energy usage in favorable regions. This underground resurgence also underscores the global dimension of digital currencies, spotlighting the complexities they introduce to governance, policy-making, and economic regulation.

Implications for the Global Bitcoin Mining Sphere

China’s mining comeback stands to influence the global cryptocurrency landscape considerably. For one, the decentralization of mining power further legitimizes Bitcoin’s resilience as a decentralized currency, standing apart from government control and demonstrating tenacity in face of regulatory challenges.

Moreover, China’s return might affect global Bitcoin prices and mining rewards allocation. By widening the scope of mining participation, competition intensifies, potentially driving innovation in mining hardware and software solutions.

As China continues this dual narrative—host to a resilient underground mining scene while officially denouncing cryptocurrencies—observers and stakeholders worldwide are left to ponder on the potential policy shifts and economic implications in the foreseeable future.

FAQ

What triggered the Bitcoin mining comeback in China?

The revival of Bitcoin mining in China is largely attributed to low electricity costs and an increase in data centers in energy-rich regions of the country.

How much of the global Bitcoin mining market does China currently hold?

As of October 2025, China accounts for 14% of the global Bitcoin mining market. This marks a significant recovery following its total withdrawal post-2021 ban.

What role does Canaan Inc. play in China’s Bitcoin mining industry?

Canaan Inc., a leading mining rig manufacturer, has significantly contributed to the mining resurgence in China. With an increased demand for mining hardware, the company reports robust growth in its Chinese sales.

Is Bitcoin mining still banned in China?

Officially, Bitcoin mining remains banned in China. However, significant mining activities continue to operate covertly, driven by excess energy availability in certain provinces.

What does China’s evolving stance on digital assets indicate?

China’s plans to introduce a fiat-backed stablecoin suggest a potential easing of its stringent policies on digital currencies, aiming to expand its renminbi’s global influence.