Key Takeaways
- China controls 55% of the global Bitcoin mining thru pools.
- Despite a ban in 2021, Chinese mining pools remain active.
- China plans to expand its cryptocurrency regulations by 2025.
China continues to dominate the Bitcoin mining industry, maintaining control of 55% of the network’s hashrate despite a nationwide ban on cryptocurrency activities implemented in 2021. This data was revealed by Ki Young Ju, founder and CEO of CryptoQuant, who noted that the U.S. follows closely behind with 40% of the hashrate.
In a post on September 23, Ju explained the dynamic:
Chinese mining pools operate 55% of the network, while U.S. pools manage 40%.
He highlighted that U.S. pools generally cater to large institutional miners, while Chinese pools support smaller miners across Asia.
This dominance comes in the face of China’s strict regulations, which banned all forms of Bitcoin mining and trading in 2021. However, advancements in technology and the decentralized nature of Bitcoin have enabled Chinese miners to continue operating discreetly, despite the government’s efforts to shut them down.
In response to increasing concerns over illicit activities, China is set to update its Anti-Money Laundering (AML) laws by 2025.
These amendments will broaden the scope of cryptocurrency regulation to curb the risks posed by money laundering through digital assets.
Meanwhile, Bitcoin miners globally have faced financial difficulties, with August 2024 being the worst month for miner revenues in nearly a year.
Revenues dropped to $827.56 million, down from $927.35 million in July.
