China

China's relationship with Bitcoin has been complex and evolving. Initially, the country emerged as a significant player in the Bitcoin ecosystem, with Chinese exchanges accounting for a substantial portion of global trading volume. Additionally, China's abundant and inexpensive electricity made it a hub for Bitcoin mining, contributing to a significant share of the network's total hash rate.

However, the Chinese government's stance on Bitcoin has been marked by increasing restrictions. In 2017, authorities banned initial coin offerings (ICOs) and imposed strict regulations on cryptocurrency exchanges. The crackdown intensified in 2021 when China declared all cryptocurrency transactions illegal and prohibited financial institutions from providing related services. Despite these measures, reports suggest that Chinese mining pools continued to control a significant portion of the Bitcoin network's hash rate, indicating ongoing, albeit clandestine, involvement in the sector. (cointelegraph.com)

Recent Developments

• Bitcoin Holdings: In 2019, Chinese authorities seized approximately 194,000 BTC from the PlusToken Ponzi scheme. While some reports claim that these assets were transferred to the national treasury, others suggest that the government has since liquidated the holdings. The lack of official confirmation has led to ongoing speculation about the current status of these assets. (cointelegraph.com)

• Mining Activity: Despite the 2021 ban on cryptocurrency mining, reports from 2024 indicate that Chinese mining pools still controlled over 55% of the Bitcoin network's hash rate. This suggests that mining operations have persisted covertly, highlighting the resilience and adaptability of the sector within China. (cointelegraph.com)

• Regulatory Discussions: In April 2025, Chinese officials and legal experts engaged in discussions to address the management of cryptocurrencies seized from criminal activities. The debates focused on establishing clearer regulations and centralized management to ensure transparency and prevent corruption. Proposals included recognizing cryptocurrencies as assets and creating standardized procedures for their disposal. (reuters.com)

China's approach to Bitcoin continues to be characterized by stringent regulations and enforcement actions. However, the persistence of mining activities and ongoing policy discussions indicate that the country's engagement with Bitcoin remains a dynamic and evolving issue.