China Maintains 55% of Bitcoin hashrate Despite Crypto Ban

Chinese Bitcoin miners continue to dominate the global Bitcoin network, despite the country’s strict ban on cryptocurrencies.

According to Ki Young Ju, founder and CEO of CryptoQuant, over 55% of the global Bitcoin mining network remains under the control of Chinese mining pools. However, there’s a gradual shift in dominance towards the United States. In a post on X (formerly Twitter) on September 23, Ju noted:

“Chinese mining pools operate 55% of the network, while U.S. pools manage 40%. U.S. pools primarily support institutional miners in America, while Chinese pools back smaller-scale miners in Asia.”

China’s continued influence on Bitcoin mining is surprising, considering the country’s comprehensive ban on Bitcoin mining and trading, which took effect in 2021.

China’s stance on crypto regulations poised for change in 2025

In response to the evolving nature of the cryptocurrency space, China is preparing to make substantial revisions to its Anti-Money Laundering (AML) regulations by 2025, which will extend to include cryptocurrency transactions. This move comes as part of a growing push for tighter controls and greater regulatory oversight.

Key financial scholars involved in drafting the revised AML regulations highlighted the broad scope of the law, which makes it difficult to address every detail in the initial draft. They emphasized the need for a structured framework to tackle the most pressing issues first.

Despite the 2021 ban, which restricted cryptocurrency trading and mining, mainland Chinese users have continued to find ways to access the crypto market, raising concerns about money laundering. The proposed amendments aim to introduce stricter guidelines to mitigate these risks.

On July 14, Galaxy Digital CEO Mike Novogratz mentioned in an X post that reports suggest China may “likely unban” Bitcoin by the end of 2024.

Bitcoin miner revenue under pressure

Bitcoin miners across the globe experienced a tough month in August, recording their lowest revenue in a year.

Data from Bitbo shows that Bitcoin miner revenue in August amounted to $827.56 million, reflecting a decline of more than 10.5% from the $927.35 million earned in July. However, this figure represents a 5% increase compared to August 2023.

August marked the worst revenue month for miners since September 2023, when earnings stood at $727.79 million. Throughout the month, Bitcoin’s price hovered around $25,000.

Additionally, the number of Bitcoins mined dropped from approximately 14,725 BTC in July to 13,843 BTC in August.

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