Bitcoin Mining Quietly Resumes in China Despite Ban: A 2025 Snapshot
- Why Is Bitcoin Mining Making a Comeback in China?
- How Are Miners Evading the Ban?
- Is Regulatory Relief on the Horizon?
- What’s Next for China’s Crypto Underground?
- FAQs: China’s Crypto Mining Resurgence
Four years after China's blanket ban on cryptocurrency operations, underground Bitcoin mining has resurged, particularly in regions like Xinjiang and Sichuan. By October 2025, China reclaimed 14% of the global hashrate—145 exahashes per second—placing it third behind the U.S. (38%) and Russia (16). This revival, fueled by excess renewable energy and lax local enforcement, hints at potential regulatory softening. Meanwhile, manufacturers like Canaan Creative report soaring domestic sales, and Hong Kong’s new stablecoin laws suggest a shifting stance. Is China quietly warming to crypto again? Let’s dig in.
Why Is Bitcoin Mining Making a Comeback in China?
Despite Beijing’s 2021 crackdown on crypto, miners have found loopholes. In Xinjiang, where wind and solar energy production outpaces grid capacity, excess electricity is quietly powering mining rigs. "It’s an open secret," a local operator told Reuters. By late 2024, private miners rebooted operations, leveraging cheap, stranded power. Sichuan’s hydropower-rich valleys followed suit. The result? China’s hashrate share jumped from zero post-ban to 14% globally by October 2025, per Hashrate Index. For context, that’s enough energy to power Norway—twice.
How Are Miners Evading the Ban?
Three words:. Remote regions like Xinjiang face infrastructure hurdles, making surplus energy hard to export. Miners exploit this by striking under-the-table deals with local officials. "When profits talk, enforcement walks," quipped a BTCC analyst. Hardware sales tell the tale: Canaan Creative’s China revenue hit 30% in 2024 and 50% in Q2 2025. Some operations even masquerade as data centers—a nod to China’s AI boom.
Is Regulatory Relief on the Horizon?
Hong Kong’s August 2025 stablecoin law—a trial balloon for mainland policy—suggests yes. Patrick Gruhn of Perpets.com calls China’s mining rebound "a market signal." Historically, Beijing tolerates gray zones when economics align (see: VPNs). With the yuan’s global push, state-backed stablecoins could follow. "The ban was never about tech—it was about control," argues Gruhn. Case in point: Inner Mongolia’s 2023 pilot allowed mining during grid surplus.
What’s Next for China’s Crypto Underground?
Watch the energy markets. As renewables expand, so will mining’s viability. Xinjiang’s solar farms now sell power to miners at $0.03/kWh—half the U.S. rate. Meanwhile, Sichuan’s rainy seasons keep hydro rigs humming. But risks remain: a single CCP memo could erase gains overnight. For now, miners play cat-and-mouse, betting profits outweigh politics. As one Sichuan operator put it: "We’re like mushrooms—they keep us in the dark and feed us bullsh*t."
FAQs: China’s Crypto Mining Resurgence
How much hashrate does China control now?
As of October 2025, China contributes 145 EH/s (14% globally), per Hashrate Index.
Which regions lead China’s mining revival?
Xinjiang (renewable surplus) and Sichuan (hydropower) are hotspots.
Could China fully legalize mining?
Unlikely soon, but Hong Kong’s stablecoin MOVE hints at gradual acceptance.
