Report: Bitcoin Mining in China Makes a Comeback Following 2021 Ban

Bitcoin mining in China has quietly resurfaced despite the government’s 2021 ban. According to Reuters, China is now the third-largest Bitcoin mining hub, accounting for 14% of the global market share as of the end of October. 

The resurgence is driven by both individual and corporate miners capitalising on the country’s low electricity costs. 

Bitcoin Mining Rebounds After a Four-Year Ban

Bitcoin mining in China has staged a comeback despite the nationwide prohibition on cryptocurrency trading and mining imposed four years ago, Reuters reports. The revival is attributed to miners taking advantage of the low electricity prices and a “data center boom” in several energy-rich provinces. 

Before the 2021 ban, China was the world’s largest crypto-mining nation. Authorities cracked down on the industry due to concerns over financial stability and excessive energy consumption. 

Mining Activity Surges

Reuters reports that China has now reclaimed its position as the world’s third-largest Bitcoin mining country, after its market share dropped to zero following the 2021 crackdown. Citing data from Hashrate Index, a Bitcoin mining analytics platform, China held 14% of global Bitcoin mining power at the end of October 2025.

The rebound is further supported by rising sales from mining rig manufacturer Canaan Inc., the world’s second-largest mining hardware producer. Company filings show that Canaan generated 30.3% of its global revenue in China in 2024—up sharply from just 2.8% in 2022. Another source told Reuters that China’s contribution to Canaan's sales rose to more than 50% in Q2 2025.

Although Canaan did not confirm the Q2 figures, it attributed its growing Chinese sales to multiple factors, including uncertainty created by President Trump’s tariff policies, which disrupted American demand; Bitcoin’s rising price, which has made mining more profitable; and a “subtle shift” in China’s stance toward digital assets.

In an emailed statement to Reuters, Canaan said that all company operations adhere to Chinese regulations but declined to comment on national mining policies. The company stated:

“In China, the R&D, manufacturing, and sale of mining machines are permitted.”

Another source, a private miner in the energy-rich Xinjiang province who began mining at the end of 2024, told Reuters:

“A lot of energy cannot be transmitted out of Xinjiang, so you consume it in the form of crypto mining.”

He added:

“New mining projects are under construction. What I can say is that people mine where electricity is cheap.”

China Softens Its Stance on Digital Assets

China appears to be gradually easing its position on digital assets. In August, reports indicated that the country was preparing to approve its first fiat-backed stablecoin through Hong Kong’s new licensing framework. The initiative aligns with China’s goal of expanding the international influence of the renminbi and reducing reliance on the U.S. dollar.

Head of research at the blockchain data and analytics firm CryptoQuant, Julio Moreno told Reuters:

“Bitcoin mining is still officially banned in China. However, there continues to be significant capacity operating.” 

According to estimates from CryptoQuant, around 15% to 20% of global Bitcoin mining now takes place in China. 

Despite these developments, Beijing’s official policy remains opposed to digital assets. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.