Bitcoin mining is big business in China, with the country’s miners controlling more than two-thirds of the global hashrate. But a crackdown by the Chinese government on cryptocurrency trading has seen miners leave the country in droves in recent months, and it’s not clear if they will be welcomed back.
The first thing to note is that, while the Chinese government has cracked down on cryptocurrency trading, it has not banned bitcoin mining. This is important because, while bitcoin mining is often associated with illicit activities like money laundering, it is actually a perfectly legal business activity.
That said, the Chinese government has made it clear that it is not supportive of bitcoin or other cryptocurrencies. In September 2017, the Chinese central bank issued a ban on initial coin offerings (ICOs), and this was followed by a crackdown on cryptocurrency exchanges.
NOTE: WARNING: Bitcoin mining is currently illegal in China. Any attempt to mine Bitcoin in China may result in serious legal consequences, including but not limited to imprisonment and/or fines. It is recommended that anyone considering Bitcoin mining in China to conduct thorough research and consult with a qualified lawyer before engaging in any activities related to Bitcoin mining.
As a result of these measures, many bitcoin miners have been forced to leave China. Some have moved to other countries, such as Canada and Iceland, where electricity costs are lower.
Others have simply shut down their operations.
It’s not clear if the Chinese government will allow bitcoin mining to resume in the country. For now, it seems likely that miners will continue to operate elsewhere.
5 Related Question Answers Found
Yes, Bitcoin is illegal in China. The Chinese government has banned the use of Bitcoin and other virtual currencies within the country. This ban was first put into place in December of 2013, and has been enforced since then.
In China, Bitcoin is not recognized as a legal currency, and its trading is banned on Chinese exchanges. However, it is still possible to buy Bitcoin in China through peer-to-peer (P2P) platforms that connect buyers and sellers. These P2P platforms allow buyers to purchase Bitcoin with Chinese Yuan (CNY) or other fiat currencies.
When it comes to Bitcoin, there is no denying that China has had a significant influence over the cryptocurrency. After all, China is home to some of the largest Bitcoin mining pools and exchanges in the world. However, does this mean that China actually controls Bitcoin?
Since China’s Central Bank declared that Bitcoin is not a currency in 2013, the crypto-community has been asking if Bitcoin is allowed in China. The simple answer is “Yes”, but there are a lot of nuances to that answer. Here’s what you need to know about Bitcoin and China.
Bitcoin mining is the process of verifying and adding transaction records to the public ledger called the blockchain. Bitcoin mining is done by running powerful computers that race against other miners in an attempt to solve a math problem. The first miner to solve the problem gets to add a new block of transaction to the blockchain and receives a reward in the form of newly minted bitcoins.
