Introduction
Despite banning cryptocurrency mining nationwide in 2021, China has recently seen a resurgence in the sector. The country’s renewed rise in Bitcoin mining, despite the 2021 ban, highlights its changing role in the global crypto ecosystem.
Recent data shows that China’s share of global mining has risen to 14% as of the end of October, placing it in third place. This rise indicates that mining activities in the country did not completely stop after the ban, but rather reshaped themselves into a more closed, organized, and regulated structure.
What Happened After the 2021 Ban?
In 2021, the Chinese government banned cryptocurrency mining and trading, citing credit bubbles, financial stability risks, energy consumption, and environmental concerns. Following this decision, China’s share in the global Bitcoin hash rate distribution dropped to nearly zero. Large miners were forced to shut down their machines or relocate their operations overseas.
During this process, mining capacity and hash rate shifted to North America, Central Asia, Russia, and other regions. Thus, 2021 was the year China withdrew from crypto mining and the global hash rate map was completely reshaped.
2024–2025 Period: A Quiet but Noticeable Comeback
Hashrate Index data shared by Reuters shows that mining in China is reviving in line with certain dynamics. As of October 2025, China’s share of global Bitcoin mining rose to approximately 14%, returning the country to its position as the world’s third-largest mining center.
Several key factors are driving this increase:
- Regions with surplus energy and cheap electricity have become attractive again for mining activities, particularly due to reasons such as excess or untransportable energy.
- Data center investments made in China in previous years had created idle capacity in some regions, such as and . Part of this infrastructure is now being repurposed for mining.
- Additionally, the significant increase in sales of mining equipment manufacturers within China in recent years indicates that local demand has strengthened and that mining has been revived on an institutional and commercial scale.
When these data are evaluated together, it is clear that mining is making a comeback in China in practice, even though the official ban is still in effect.
Why Unofficial, Why Silent, and Why Still Banned?
The Chinese government’s policy continues to officially ban mining, and the ban is not expected to be lifted in the short term. Therefore, the comeback is happening through shadow or underground methods. That is, most operations are carried out without official permission, registration, or supervision; sometimes through local authorities turning a blind eye or indirect agreements.
Furthermore, this development does not mean that China’s policies toward crypto assets or crypto trading are softening overall. Mining is currently being reshaped into a specialized microeconomy that optimizes energy usage and leverages existing infrastructure.
What Does This Move Mean Strategically for China?
There are both economic and strategic reasons behind China’s renewed visibility in the mining sector:
- Excess Energy / Inefficient Transmission Infrastructure: Particularly in certain regions, some of the energy produced is either unused or cannot be transmitted efficiently. Mining offers an advantageous option for utilizing this energy, as it consumes energy but does not require long-distance transportation.
- Data Centers / Infrastructure Investments: Over the years, significant investments have been made in data centers and IT infrastructure in China. Since part of this capacity remains idle, repurposing it for mining appears economically rational.
- Bitcoin Price / Profitability: The increase in Bitcoin’s value and the revival of the global crypto market have made mining an attractive and profitable activity again. This encourages both individual and corporate operations.
- Strategic / Geopolitical Considerations: Some analysts believe that China is pursuing a strategy of controlled tolerance rather than completely suppressing Bitcoin mining. This may be due to Bitcoin’s growing importance in the global financial system and the strategic role that digital assets have gained in the US-China competition. Therefore, this quiet shift is likely not coincidental and has both economic and strategic underpinnings.,
What Could Happen Next? Possible Scenarios
| Scenario | Description |
|---|---|
| Official ban continues, underground mining increases | A structure may emerge where the ban continues but the state (especially local governments) quietly turns a blind eye to miners in order to absorb excess energy. Mining continues to grow in the gray area. |
| Gradual relaxation / regulation | Even if the government does not completely lift the ban, it may tolerate limited and licensed mining models based on green energy, data centers, and control mechanisms. |
| Strict repression (more radical) | If energy consumption, carbon targets, or financial risks increase — or if external pressures intensify — authorities could crack down on mining again with strict enforcement. |
| New technology / alternative crypto strategy | The country may prioritize state-backed digital currency projects or national blockchain infrastructures over Bitcoin mining, signaling a shift toward a different cryptocurrency model. |
Conclusion and Assessment
In light of these developments, it is possible to say that China’s move in the mining sector is a partial but controlled and pragmatic shift. China’s steps signal a new approach that takes into account the growing economic and strategic importance of crypto infrastructure. The evaluation of excess energy, the reuse of data infrastructure, and the desire not to be completely excluded from the global Bitcoin network are at the forefront of these.
However, this shift does not mean that bans have been lifted or policies relaxed based on current data. Rather, it appears that a delicate balance has been established, creating an ecosystem that is banned on paper but takes shape as an intermediate form in practice.
This situation can be seen as a model that does not completely liberalize crypto but signals a controlled and pragmatic return through energy, infrastructure, and strategic interests.
Disclaimer
Please note that this content is for informational and educational purposes only. It does not constitute a financial advice, investment advice, legal advice or regulatory advice of any kind.
Cryptocurrency markets and mining operations are speculative investments with uncertain legal status. In jurisdictions where laws and regulations are in flux, they are especially dangerous
This information is correct according to data analysis and publicly (outward-facing though not officially published), is as at 2017, and is only the author’s independent interpretation. There may yet be future updates
Before arranging for specific financial or business activities requiring digital asset, cryptocurrency or mining services, we recommend that readers carry out their own research and get advice from qualified professionals.
