Chinese Bitcoin miners continue to dominate the global network, despite the country’s ban on cryptocurrencies. According to CryptoQuant founder and CEO Ki Young Ju, Chinese mining pools still control over 55% of the Bitcoin (BTC) mining network. However, there is a gradual shift in dominance towards US mining firms. Ju noted in a September 23rd post that China’s control over the network is surprising considering the country’s ban on Bitcoin mining and trading, which came into effect in 2021.
China is planning to make significant amendments to its Anti-Money Laundering (AML) regulations in 2025, expanding them to include cryptocurrency transactions in response to increasing demands for stricter oversight. Prominent scholars and financial experts involved in discussions on the revised draft of the AML regulations have expressed challenges in making the law comprehensive due to its broad scope. The most pressing issues will be addressed in a framework initially.
Despite the ban, mainland users in China have found ways to access the crypto market, leading to concerns about money laundering risks. The amended regulations aim to impose stricter guidelines to combat such activities. Galaxy Digital CEO Mike Novogratz shared reports suggesting that China is likely to lift the ban on Bitcoin by late 2024.
Bitcoin miners worldwide faced significant pressure in August, experiencing the lowest revenue month in a year. Miner revenue dropped by over 10.5% from July to reach $827.56 million in August. However, this figure was still 5% higher than August 2023. It was the worst revenue month for Bitcoin miners since September 2023 when they earned $727.79 million. During the month, Bitcoin remained around $25,000. Additionally, the number of mined Bitcoin slightly decreased from around 14,725 BTC in July to 13,843 BTC in August.
Chinese traders and miners have found ways to navigate around China’s crypto ban, highlighting the resilience and adaptability of the industry.