Bitcoin mining in China rebounded to third place globally after a complete ban, with market share rising to 14%

According to Reuters, despite China's comprehensive ban on cryptocurrency trading and mining activities in 2021, Bitcoin mining has quietly returned to China recently. As of the end of October this year, China's share of the global Bitcoin mining market has risen to 14%, ranking third.

Data from miners and the industry show that some energy-rich provinces, due to low electricity costs and the expansion of data centers, have attracted individual and corporate miners back to the mining field. Analysts point out that China's policy flexibility is reflected under the drive of economic interests. Although the authorities have not officially relaxed mining restrictions, related activities remain active in areas with abundant electricity, such as Xinjiang.

Sales data from mining machine manufacturer Canaan also shows a significant rebound in demand in the Chinese market, with its sales in China accounting for over 50% in the second quarter of this year. Additionally, the implementation of the stablecoin bill in Hong Kong and the potential development of a renminbi stablecoin also indicate a softening of China's attitude towards digital assets. CryptoQuant estimates that currently about 15%-20% of the global Bitcoin mining capacity is still operating in China. Industry insiders believe that as the profitability of mining activities increases, related policies may gradually loosen.