The Chinese government has long banned cryptocurrency mining activities within its borders, but this hasn’t stopped the country from dominating the global Bitcoin mining industry.
In a post on X (formerly Twitter) on Monday (September 23, 2024), CryptoQuant CEO Ki Young Ju revealed that Chinese mining pools contribute up to 55% of the global Bitcoin network’s hashrate, far outpacing the United States, which controls only about 40%.
According to Young Ju, this dominance is due to Chinese mining pools supporting more small-scale miners in Asia, whereas the U.S. generally caters to institutional miners with more advanced mining rigs.
Crypto Mining Still Banned in China
China’s dominance in Bitcoin mining contrasts sharply with the government’s strict ban on crypto mining and trading since 2021. This ban was implemented to reduce financial risks and control the domestic flow of money.
This move followed earlier government actions, including banning Initial Coin Offerings (ICOs) and shutting down local crypto exchanges in 2017.
Moreover, reports suggest that China is planning significant amendments to its anti-money laundering regulations in 2024, extending their scope to include cryptocurrency transactions. These proposed changes come at a time when Chinese crypto investors have found ways to bypass the current ban to access the crypto market.
Meanwhile, Former President Donald Trump has previously asserted that the United States. must not fall behind China, particularly in the realm of global crypto technology. He also emphasized that Bitcoin should be mined, minted, and produced within the United States.
Follow our Twitter : https://x.com/safubit
Read : Bank of Canada Warns AI Could Trigger Inflation (dinodapps.com)
