China's crypto ban ineffective? Reuters: Bitcoin mining computing power rises to 14%, returning to the world's third largest mining country.

According to Reuters, although the Chinese government jointly issued the Notice on Further Preventing and Handling the Speculation Risk of Virtual Currency Trading in September 2021 jointly issued by the central bank and ten other departments, explicitly banning all cryptocurrency trading and mining activities, four years later, bitcoin mining activities have quietly recovered in mainland China. (Synopsis: The Chinese market is miserable!) Shanghai second-hand car dealer Cango spent 400 million magnesium to “enter the United States bitcoin mining”, and its stock price soared 84%) (Background supplement: Chinese court invalidates “overseas mining” commercial contract! Disrupting financial order and public interest) According to Reuters, although the Chinese government jointly issued the Notice on Further Preventing and Handling the Speculation Risk of Virtual Currency Trading in September 2021 jointly issued by the central bank and other ten departments, explicitly banning all cryptocurrency trading and mining activities, four years later, bitcoin mining activities have quietly recovered in mainland China. According to the latest data from Reuters and professional organization Hashrate Index, as of the end of October 2025, China's bitcoin network computing power ratio has rebounded strongly to 14%, surpassing Kazakhstan and returning to the world's third largest mining country, only behind the United States (37.75%) and Russia (15.51%). This means that the huge “zero clearance operation” is facing real challenges, and miners are making a strong return in a “curved way” through underground operation of mines, distributed computer rooms and local acquiescence. The three driving forces behind the recovery Industry insiders pointed out that the “comeback” of China's mining activities is not accidental, mainly driven by the following factors: First, electricity is extremely cheap and excessive. Xinjiang, Sichuan, Inner Mongolia and other places are rich in hydropower, wind power, photovoltaic resources, industrial electricity prices as low as 0.2~0.35 yuan / kWh, far lower than the international average. Especially in Sichuan during the flood season, the power generation is huge, and the local miners described: “If you don't dig in vain, don't dig, otherwise the electricity will flow away in vain.” The second is the idle capacity of AI data centers and the shift to mining. In the past two years, the construction of AI and cloud computing data centers across China has led to a large number of computer rooms and power quotas being idle. Some financially strapped local governments have turned a blind eye and allowed these facilities to switch to bitcoin mining activities that can absorb excess electricity while generating tax revenue and employment. Finally, the price of Bitcoin is high and the profits are attractive. Bitcoin once rushed to an all-time high of $126,000 this year, and even if it is now rolled back to the range of $80,000 to $90,000, high-efficiency mining machines can still earn $30 to $40 per EH/s per day, which is much higher than the cost of electricity, so it has attracted a lot of money and old miners to return. In addition, the second quarter of 2025 financial report of Canaan, a major Chinese mining machine manufacturer, also supports this boom: the proportion of revenue in the Chinese market has soared to more than 50%, a sharp increase from less than 3% in 2022. The risk is still high, and the future direction is a mystery However, although underground mining activities are booming, the risks have not disappeared: first, raids and power cuts, huge fines and even criminal liability may still fall at any time, and the tragedy of “mining machines closed overnight” in Sichuan in 2021 is still vividly remembered; Second, as China's 2026 “dual carbon” target deadline approaches, if the central government strikes hard, the local umbrella may also fail in an instant. However, analysts believe that as long as the bitcoin price remains above $70,000 and local fiscal pressures persist, this “cat and mouse” game will continue to be staged. The “phoenix nirvana” of Chinese mining has not only changed the global computing power map, but also proved once again that when the economic incentives are large enough, the policy red line will also be quietly moved. Related reports South Korea's shared power bank online mining function, charging PIGGY airdrop, token has been listed on Binance Telegram founder launches confidential AI computing network Cocoon: Focuses on GPU mining, deeply integrates TON and Telegram Wall Street investment bank Jefferies: Bitcoin mining profit rate fell 7% in September, mining companies face the double threat of “soaring computing power + lower currency prices” (China's encryption ban expires? Reuters: Bitcoin mining power climbs to 14%, returning to the world's third-largest mining country" This article was first published in BlockTempo's “Dynamic Trend - The Most Influential Blockchain News Media”.