In 2021, China’s People’s Bank and Financial Stability Committee announced a major crackdown on Bitcoin mining, prompting exaggerated forecasts of total industry shutdowns.
Despite initial disruptions, Chinese hashrate rebounded by 2025, showing resilience and adaptation among global Bitcoin mining operations.
China’s Global Hashrate Share Exceeds 14% by 2025
The 2021 China Bitcoin mining crackdown was announced by the People’s Bank of China and Financial Stability and Development Committee.
These regulators targeted Bitcoin mining and trading to mitigate financial and environmental risks. Miners, however, relocated operations offshore. China’s share of global hashrate exceeded 14% by 2025 despite ongoing enforcement efforts.
Bitcoin Hashrate Drops, Miners Head Offshore
The crackdown initially led to a temporary drop in Bitcoin’s hashrate. Miners accelerated migration to countries with favorable regulations, sustaining operations.
Projected outcomes include economic shifts and regulatory challenges. The 2025 ban caused BTC prices to drop and led to substantial liquidations, indicating market sensitivity to China’s policies.
“Crack down on Bitcoin mining and trading behavior” for risk control. — Financial Stability and Development Committee (FSDC)
Illicit Mining Persists Despite Policy Pressure
China has a history of cryptocurrency bans, including ICO and Bitcoin transaction prohibitions since 2013. Each attempt resulted in activities relocating globally.
Experts suggest China’s policies might push innovation overseas, though illicit mining continues domestically. The country’s share in global hashrate implies incomplete enforcement.
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