Assets, Bitcoin

Is Bitcoin Mining Illegal in China?

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.

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