Chinese Bitcoin miners continue to dominate the global network, despite the country’s ban on cryptocurrencies. According to CryptoQuant’s founder and CEO, Ki Young Ju, Chinese mining pools control over 55% of the Bitcoin mining network. However, there is a gradual shift in dominance towards US mining firms. In a recent post, Ju highlighted the distribution of mining pool hashrates by country, showing China’s surprising control over the network. This is despite the country’s ban on Bitcoin mining and trading, which was implemented in 2021.
China’s stance on crypto regulations may undergo significant changes in 2025, as the country plans to amend its Anti-Money Laundering (AML) regulations. The revised draft of the AML regulations aims to include cryptocurrency transactions within its scope, in response to the increasing demands for stricter oversight. Prominent scholars and financial experts involved in the discussions on the draft have acknowledged the challenges of creating a comprehensive framework due to the broad nature of the AML law. As a result, the most urgent aspects will be addressed first.
Although China has prohibited cryptocurrency use and banned all forms of mining, mainland users have found ways to access the crypto market, leading to money laundering risks. The amended regulations seek to impose stricter guidelines to combat such activities. In a recent statement, Galaxy Digital CEO Mike Novogratz suggested that China is likely to lift the ban on Bitcoin by late 2024.
Bitcoin miners worldwide faced significant pressure in August, with the month marking the lowest revenue in a year. Miner revenue dropped by over 10.5% from July, reaching $827.56 million. However, this still represented a 5% increase compared to August 2023. It was the worst revenue month for Bitcoin miners since September 2023. Despite these challenges, the number of mined Bitcoins slightly decreased from July to August.
Overall, Chinese traders and miners have found ways to navigate around China’s crypto ban, highlighting the resilient nature of the cryptocurrency market.