China has escalated its campaign against digital assets, convening thirteen state agencies to signal renewed pressure on trading and stablecoin activity. Despite ongoing restrictions, data indicates that the country still accounts for approximately 14% of the global Bitcoin hashrate, suggesting the persistence of mining operations. Pro-crypto analysts interpret this development as a reflection of Beijing’s drive for tighter control amidst accelerating global blockchain innovation.
The People’s Bank of China, in collaboration with thirteen government bodies including judicial and internet regulators, reaffirmed that digital assets do not hold legal currency status within the Chinese economy. Consequently, any attempt to utilize them in payment systems is classified as illegal financial activity.
Stablecoins emerged as a central point of discussion during the summit. Authorities issued warnings that pegged tokens could facilitate opaque cross-border financial flows if they operate without robust identity verification and anti-money-laundering measures. This stance aligns with the stricter regulatory frameworks recently adopted in Europe and North America, particularly following periods of market turbulence.
In contrast, pro-crypto analysts highlighted the continued importance of stablecoins for global liquidity. They argued that these assets enable rapid and cost-effective value transfer for users who depend on decentralized finance to circumvent the slower or more restrictive traditional banking channels.
Mining Activity Persists Despite Enforcement
Despite the intensified pressure from Chinese authorities, independent data reveals that China continues to contribute roughly 14% to the global Bitcoin hashrate. This figure serves as an indicator that underground mining operations are likely persisting, particularly in regions with access to abundant hydroelectric or solar energy resources.
Although large-scale Bitcoin mining was officially banned in 2021, industry observers note that several operators have relocated their major facilities abroad. However, they are believed to have maintained smaller, more discreet operations within China. Analysts suggest that this situation underscores the inherent limitations of territorial bans when applied to decentralized networks.
Developers located in Hong Kong and Singapore have observed that China’s restrictive approach to digital assets stands in stark contrast to the rapid advancements occurring elsewhere in Asia. These advancements include the expansion of tokenization pilots, the establishment of digital-asset licensing regimes, and the development of cross-border blockchain infrastructure. Such developments are actively encouraging the migration of innovation towards jurisdictions that offer more open and competitive environments.
China's renewed enforcement efforts are aimed at reinforcing its monetary authority. However, global blockchain adoption continues its upward trajectory. Stablecoins remain a critical component for international money transfers, and Bitcoin mining activity shows resilience despite prohibitions. The widening disparity between domestic restrictions and international progress suggests that the momentum of the cryptocurrency sector remains strong, with emerging hubs in Asia and Europe poised to lead the next phase of development.