Chinese Bitcoin miners still control the lion’s share of the global network despite the country’s ban on cryptocurrencies.
Over 55% of the Bitcoin (BTC) mining network is still controlled by Chinese mining pools, according to Ki Young Ju, the founder and CEO of CryptoQuant.
However, Bitcoin mining dominance is slowly shifting to US mining firms, Ju wrote in a Sept. 23 X post:
“Chinese mining pools operate 55% of the network, while U.S. pools manage 40%. U.S. pools primarily cater to institutional miners in America, while Chinese pools support relatively smaller miners in Asia.”
BTC: Mining Pool hashrate distribution by country. Source: Ki Young Ju
China’s surprising dominance over the network comes despite the country’s blanket ban on Bitcoin mining and trading, which went into effect in 2021.
China’s stance on crypto regulations poised for change in 2025
China is planning a significant amendment to its Anti-Money Laundering (AML) regulations in 2025, expanding them to cover cryptocurrency transactions in response to growing demands for stricter oversight.
Prominent scholars and financial experts who participated in the discussions on the revised draft of the AML regulations said that the AML law involves a relatively broad scope, making it difficult for the draft to be comprehensive. The most urgent content can only be reflected in a framework first.
China imposed a blanket ban on cryptocurrency use in 2021, prohibiting off-shore exchanges from offering services and banning all forms of mining.
However, with technological advancements and the decentralized nature of cryptocurrencies, mainland users have found ways to access the crypto market, leading to money laundering risks. The new amended regulations aim to impose stricter guidelines to curb such activities.
On July 14, Galaxy Digital CEO Mike Novogratz shared on X that he has been hearing reports suggesting China is “likely to unban” Bitcoin by late 2024.
Source: Mike Novogratz
Bitcoin miner revenue under pressure
Bitcoin miners around the world faced significant pressure in August, marking the lowest revenue month in a year.
Miner revenue reached $827.56 million in August, dropping over 10.5% from July’s $927.35 million, but it was up 5% from August 2023, Bitbo data shows.
It is the worst revenue month for Bitcoin miners since September 2023, when they earned $727.79 million. Bitcoin hovered around $25,000 throughout the month.
Meanwhile, the number of mined Bitcoin for the month slightly dropped from around 14,725 BTC mined in July to 13,843 BTC in August.
Magazine: How Chinese traders and miners get around China’s crypto ban
