Crypto Mining Activity Continues in China, Despite The Ban

The Chinese government imposed a ban on all crypto-mining operations back in 2017. However, recent data shows that although there was an interruption of activity during this time period for miners and traders alike- it never disappeared entirely from China’s population as a whole.

The findings of a recent study released by the CCAF revealed that China resurfaced as one of the leading countries in terms of global Bitcoin mining.

It may be surprising to some that China is still a major player in the crypto world, but it turns out they are second only behind America when looking at year-over-year growth. The research obtained by collaborating with mining pools such as BTC .com, Poolin ViaBTC, and Foundry shows how Chinese miners have seen an increase in power consumption.

The map of the world’s hash rate demonstrates just how vast and diverse it really is. It shows that China managed to maintain 21.1% over one year, while Kazakhstan came in second place with 13.22%. Canada holds 6.48% and Russia with 4.66%.

The research found that China’s hash rate has increased due to underground operations, which resulted in a sudden jump back up again. It currently stands at 30 EH/s.

A study conducted by The University of Hong Kong revealed Chinese Bitcoin mining activity is on the rise despite restrictions set forth by law enforcement agencies within mainland territory, where cryptocurrency is not legally traded or used but still exists largely thanks to its popularity among traders both locally and internationally who continue conducting such transactions via VPN connections (Virtual Private Networks) outside the regulated parameters.

In a bold move that would change the landscape of China’s crypto mining industry completely, in May 2021 State Council ordered all provinces to prepare for an outright ban on crypto mining. This was done with little warning and came as quite unexpected news given recent trends.

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The Chinese government has spent years encouraging its citizens to invest in cryptocurrency. This plan was put into effect as soon as they could mine it themselves, which is why many mining hotspots shut down once the ban became effective and China’s total share crashed below 0%.

The Chinese government’s recent move to crack down on cryptocurrency has had a negative effect on the global hash rate distribution, but it may be useful in terms of network security and decentralized principles for Bitcoin.

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