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Bitcoin (BTC-USD) mining is quietly making a comeback in China, four years after the government officially outlawed it. Both independent miners and corporate operations have found ways to capitalize on low-cost electricity and the rapid expansion of data centers in certain energy-rich regions, according to people in the industry and available data.
Before the 2021 ban—introduced over financial stability concerns and energy-use issues—China was the world’s largest hub for crypto mining. The crackdown pushed its global mining share down to zero. But by the end of October, China had climbed back to the third-largest spot, reclaiming about 14% of the global market, based on data from the Hashrate Index.
This renewed activity is also reflected in the strong recovery of mining rig sales from China-based manufacturer Canaan Inc. The revival could potentially support both demand and price stability for Bitcoin worldwide.
One miner, Wang from Xinjiang, said he restarted operations late last year. The region’s abundant, and often stranded, electricity makes it attractive. *“A lot of Xinjiang’s energy can’t be transmitted elsewhere, so crypto mining becomes a way to use it,”* Wang explained. *“New mining sites are being built. All I can say is miners go wherever power is cheap.”*
The National Development and Reform Commission—the agency that issued the original ban—and Xinjiang’s local government did not respond to Reuters’ requests for comment.
China’s quiet return to Bitcoin mining isn’t surprising. Whenever there’s abundant cheap energy, mining tends to find a way back—even in countries with strict bans. It also shows that crypto regulations can be difficult to enforce at scale, especially when local economics create strong incentives. If the trend continues, China may once again become a major force in the mining ecosystem, even if unofficially.