Crypto Mining China: Why It Vanished and What Replaced It

When you think of crypto mining China, the once-dominant global hub for Bitcoin and Ethereum mining that was abruptly shut down by government order in 2021. Also known as Chinese cryptocurrency mining, it wasn't just a trend—it was the backbone of the entire Proof of Work network. In 2020, over 65% of Bitcoin mining happened in China. Miners ran massive farms in Sichuan, Inner Mongolia, and Xinjiang, using cheap hydroelectric and coal power to keep costs low. But in 2021, the Chinese government didn’t just regulate it—they erased it. No warnings. No phase-outs. Just a total ban on all crypto mining activities, enforced with power cuts, equipment seizures, and factory shutdowns.

Why? Because Proof of Work, the energy-intensive consensus method that powers Bitcoin and other blockchains by solving complex math problems. Also known as mining-based blockchain validation, it consumed more electricity than entire countries like Argentina and the Netherlands. The Chinese government saw it as a threat to energy security and financial control. They didn’t care about decentralization—they cared about stability. And mining farms, with their anonymous transactions and offshore profits, were the opposite of stable. The ban didn’t just move mining—it shattered it. Thousands of miners fled to the U.S., Kazakhstan, Russia, and the Middle East. Some sold their rigs for scrap. Others kept running underground. The global hash rate dropped by nearly 50% overnight. But the network didn’t break. It adapted. New miners stepped in. New energy sources kicked in. And the world learned: no single country should control the backbone of a decentralized network.

Today, crypto regulations China, the strict legal framework that bans all crypto mining, trading, and financial services related to digital assets. Also known as PBoC crypto restrictions, it remains one of the most aggressive crypto policies in history. Chinese banks still block crypto-to-fiat withdrawals. Exchanges like Binance and Huobi lost their mainland operations. Even holding crypto privately is risky. But the legacy of Chinese mining lives on—not in data centers, but in how the rest of the world now thinks about energy, control, and resilience. The posts below show you exactly what happened after the ban, how miners adapted, and why the global mining map looks nothing like it did in 2020. You’ll see real case studies, energy shifts, and what it means for your own mining or investing decisions today.