The Quiet Return of Bitcoin Mining Operations in China Despite the 2021 Ban

Reports from Reuters indicate that Bitcoin mining activity is quietly returning in China, despite the nationwide ban enacted in 2021. Current data shows China contributes about 14% of the global hashrate, making it the third-largest Bitcoin mining hub in the world. Many miners have resumed operations in regions with abundant and cheap electricity such as Xinjiang and Sichuan, where new mining facilities continue to be built.

These areas provide low-cost energy and existing infrastructure, making covert mining operations more feasible. CryptoQuant analysts estimate that 15%–20% of global Bitcoin mining activity may now originate from China, much higher than previously predicted. This suggests that the enforcement of the ban has become less strict or is difficult to maintain, and China’s energy-rich regions continue to play a significant role in the global Bitcoin mining ecosystem.