CryptoQuant Founder Reveals Chinese Mining Pools Control 54% of Global Market
CryptoQuant founder Ki Young Ju has reported that mining pools from China currently control an astonishing 54% of the global cryptocurrency mining market. This indicates that China, despite the official ban on mining, continues to have a significant influence on the global industry.
China’s Ban on Cryptocurrency Mining Not Stopping Operations
Ki Young Ju emphasized that, despite the official bans, mining pools in China are still operating. The authorities, who announced a ban on cryptocurrency mining activities in 2021, are trying not to disclose information about the continued activity of these pools. The ban, introduced in the fall of 2021, aimed to stop mining activities and included fines and other sanctions for violating the new legislation.
However, many mining companies not only did not stop their operations but also continued to mine digital assets, highlighting the difficulty in curbing and the scale of illegal activities in this area.
Impact of China’s Mining Ban on Global Industry
This situation has had a significant impact on the global cryptocurrency industry. The ban on mining in China led many companies to relocate their operations to other countries, such as the United States, allowing them to take the second spot in the global ranking by mining volumes. Ki Young Ju noted that currently, the US accounts for about 40% of the global bitcoin mining, a significant increase compared to previous years.
Experts believe that the ban on mining in China has negatively affected the industry, as it has led to the migration of mining companies and a shift in the global balance of power. This situation has led to a reorientation of the global industry, increasing activity in other regions and influencing the distribution of resources and technology.
