Key Takeaways
Why did China ban cryptocurrency mining and transactions in 2021?
China banned crypto mining and transactions in 2021 to curb financial crimes and protect its financial system from instability caused by unregulated digital assets.
Has crypto mining in China stopped completely?
Despite the ban, mining operations have quietly continued underground, with China still accounting for 14.05% of Bitcoin’s total hashrate as of Q4 2025.
China’s uneasy relationship with cryptocurrency has long been defined by strict scrutiny and resistance to digital assets.
This position hardened in 2021, when the government imposed a sweeping ban on crypto mining.
Shortly afterwards, the People’s Bank of China (PBOC) took an even stronger step and banned all cryptocurrency transactions in late September of that year.
The central bank justified this move by pointing to the use of crypto in illicit financial activities and the growing threat it posed to the country’s financial stability.
Fast forward to 2025, China’s crypto mining story has taken an unexpected turn.
Chinese Bitcoin Mining Data Breaks Record
Despite the government’s sweeping crackdown on digital assets and its continued efforts to eliminate mining operations, new data indicates that the activity has never stopped completely.
According to Luxor’s fourth quarter 2025 Global hashrate mapChina now contributes 14.05% of Bitcoin’s total computing power, approximately 145 exahashes per second (EH/s), up slightly from 13.8% in the previous quarter.
Source: Hashrate index
This places China as the third largest Bitcoin [BTC] mining hub in the world, behind only the United States and Russia.
While Luxor data does not pinpoint exact mine locations, industry insiders believe much of this hidden activity is concentrated in Xinjiang.
According to Miner weeklyMultiple ASIC supply chain sources suggest miners have quietly resumed operations in the region.
Xinjiang’s remoteness and access to cheap, abundant energy have long made it a favorable hub for large-scale mining.
Bitcoin price action and hashrate
At the same time, Bitcoin itself seems to be gaining strength again.
According to CoinMarketCapBTC was trading around $111,007.61 at the time of writing, reflecting a 1.16% increase in the past 24 hours.
Meanwhile, the global Bitcoin hashrate stood at 1,137.06 EH/s, a sign of robust miner participation and increased network security.
Source: CoinWarz
A rising hashrate typically indicates that miners are confident in Bitcoin’s long-term profitability and stability.
Despite China’s efforts to suppress crypto mining, miners continue to play an important role in supporting Bitcoin’s global network.