Contrary to widespread reports of an alleged ban on Bitcoin mining in China, a specialist researcher has set the record straight. According to his revelations, the Chinese government never actually banned this activity, but merely imposed a temporary suspension.
Mining bitcoin in China, a suspension rather than a definitive ban
The Western media seem to have largely distorted the reality of China’s policy towards Bitcoin mining. In some surprising revelations, Daniel Batten, a renowned analyst of the environmental impact of Bitcoin, categorically refutes allegations that China has banned bitcoin mining.
According to his extensive research, what was presented as a “ban” was in fact only a temporary suspension activities, which have since largely resumed throughout the country.
Batten compares this situation to the temporary expulsion of a student from school, stating: ”If a disruptive student is expelled for a few days, this does not mean that he or she has been permanently expelled“. In the same way, mining operators were able to quickly resume their activities after this brief interruption.
The analyst points out that Chinese hashrate, a key indicator of computing power dedicated to mining, currently represents around 15% of the world total. This figure contrasts sharply with the dominant view of 2021, when the media reported widespread repression of bitcoin mining and transactions by Beijing.
Credible sources confirm continued mining operations in China after the alleged ban. Reputable chains CNBC and NBC reported that mining activity was still ongoing. Moreover, as early as December 2021, Chinese hashrate had risen to 19.1% of the total according to data from the University of Cambridge.
These revelations contradict accounts of China’s outright hostility to crypto mining.
A nuanced approach to green mining
Far from a radical ban, the China actually seems encourage a sustainable form of Bitcoin mining and environmentally-friendly mining on its territory. Many mining operators are now turning to innovative, environmentally-friendly solutions, such as using surplus renewable energy or recycling waste heat.
Daniel Batten points out that small-scale local mining operations focusing on green energy are not only tolerated, but even actively supported in some regions.
If you have between 200 and 500 miners recovering renewable energies, you’re welcome, especially in Inner Mongolia, which abounds in untapped green resources,” he explains.
Statement by Daniel Batten
This policy is in line with the trajectory of China towards the ambitious goal of carbon neutrality by 2060. Provincial authorities thus support mining initiatives with high energy efficiency and a small environmental footprint contributing to regional energy solutions, while ensuring compliance with regulations on cross-border capital movements.
We spoke to several mining companies operating in China. The message is clear: if your operation remains modest, discreet and you don’t seek to transfer money across borders, you can continue your operations.
Batten statement
These revelations put China’s real policy regarding Bitcoin mining, much more nuanced and sustainability-oriented than initially portrayed.
As a journalist at Coinpri, I’ve been captivated by the world of bitcoin and blockchain since 2020. The decentralized aspect of Bitcoin particularly piqued my interest. Since then, I’ve been working constantly to spread my knowledge, hoping one day to see a world where everyone fully enjoys their financial freedom.
