Bitcoin miners in China still maintain a large amount of control over the global network, despite the country's cryptocurrency ban.
According to Ki Young Ju, founder and CEO of CryptoQuant, more than 55% of the Bitcoin mining network is still managed by Chinese mining pools.
However, this dominance is gradually shifting to US mining companies. In a post on X on September 23, Ju said:
“Chinese mining pools account for 55% of the network, while US pools manage 40%. US pools primarily serve institutional miners in the country, while Chinese pools support smaller miners in Asia.”
Bitcoin mining pool hashrate distribution by country | Source: Ki Young Ju
China's surprising dominance in the sector comes despite a comprehensive ban on Bitcoin mining and trading coming into effect in 2021.
China's View on Cryptocurrency Regulations Will Change by 2025
China is preparing to revise its Anti-Money Laundering (AML) regulations, expanding their scope to include cryptocurrency transactions, in response to growing demands for tighter oversight.
According to scholars and financial experts who participated in the discussion of the draft amendment, the scope of the AML law is relatively broad, making it complicated to finalize the draft. The most urgent contents will be presented in a framework first.
Since the 2021 crypto ban, which banned foreign exchanges and all mining operations, domestic users have still found ways to access the crypto market, leading to money laundering risks. The new revised regulations are expected to introduce stricter guidelines to prevent this.
On July 14, Galaxy Digital CEO Mike Novogratz shared on X that he received information suggesting that China “will likely lift the ban” on Bitcoin by the end of 2024.
Bitcoin miner revenue under pressure
Bitcoin miners around the world faced intense pressure in August, marking their lowest revenue month in a year. Miner revenue reached $827.56 million in August, down more than 10.5% from July's $927.35 million, but up 5% from August 2023, according to data from Bitbo.
This was the worst month for Bitcoin miners since September 2023, when they earned $727.79 million. Bitcoin's price remained around $25,000 throughout the month.
Meanwhile, the number of Bitcoins mined during the month also decreased slightly, from about 14,725 BTC in July to 13,843 BTC in August.
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