September 25, 2024
By Our Correspondent
According to Ki Young Ju, the founder and CEO of CryptoQuant, Chinese mining pools still control a significant portion of the Bitcoin mining network. Nevertheless, there is a gradual shift in dominance towards U.S. mining firms. In a post on X dated September 23, Ju stated: “Chinese mining pools account for 55% of the network, while U.S. pools manage 40%.
The U.S. pools primarily serve institutional miners within America, whereas Chinese pools tend to support smaller miners in Asia.” This unexpected dominance of China over the network persists despite the country’s comprehensive ban on Bitcoin mining and trading, which was implemented in 2021. In 2025, China plans to introduce substantial changes to its Anti-Money Laundering (AML) regulations, extending them to encompass cryptocurrency transactions in response to increasing calls for enhanced oversight.
Notable scholars and financial experts involved in discussions regarding the revised AML draft have indicated that the law’s broad scope presents challenges in creating a comprehensive draft.
Consequently, the most pressing issues will initially be addressed within a broader framework. In 2021, China enacted a total ban on cryptocurrency activities, prohibiting offshore exchanges from providing services and outlawing all forms of mining.
However, due to technological advancements and the decentralized characteristics of cryptocurrencies, users in mainland China have discovered methods to access the crypto market, resulting in potential money laundering risks.
The forthcoming amended regulations aim to establish stricter guidelines to mitigate such activities. On July 14, Galaxy Digital CEO Mike Novogratz mentioned on X that he has received reports indicating that China is “likely to unban” Bitcoin by late 2024.
In August, Bitcoin miners globally encountered considerable challenges, resulting in the lowest revenue month in a year.
According to Bitbo data, miner revenue totaled $827.56 million in August, reflecting a decline of over 10.5% from July’s $927.35 million, although it represented a 5% increase compared to August 2022.
This marks the most challenging revenue month for Bitcoin miners since September 2022, when their earnings were $727.79 million. Throughout August, Bitcoin’s value remained around $25,000. Additionally, the quantity of Bitcoin mined decreased slightly from approximately 14,725 BTC in July to 13,843 BTC in August.
