In recent years, there has been a lot of talk that China may soon open up to crypto. Many people today think that the country will simply allow trading in Bitcoin or Ethereum. However, the truth is quite different. China does not accept cryptocurrencies, but it still uses them—just not in the way you might expect. Mining and strategic investments make it a very strong player in the global market.
Article content:
- China: banned and wanted – What is the situation with cryptocurrencies in China?
- China is taking a different approach – How China created a monopoly on coin mining
- China will not open its crypto market just like that – and here are the reasons why
- Could it have been intentional? The myth of China as a crypto scam
- It's a popular theory — but these tactics are used in the crypto world
- We are in an information-economic war, and every piece of misinformation costs us something
China: banned and wanted – What is the situation with cryptocurrencies in China?
Since 2021, crypto trading has been banned in mainland China and mining is illegal. Why? Mainly because of concerns about financial stability, investor protection, and the fact that mining farms consume a lot of electricity and harm the environment. In practice, this meant that many miners had to move abroad. China thus lost its dominant share of the global hashrate, but it did not disappear from the market entirely.
China is taking a different approach – How China created a monopoly on coin mining
Despite the ban at home, China is still mining cryptocurrencies. It uses foreign projects and investments to do so. For example, in 2025, BIT Mining purchased a 51 MW mining facility in Ethiopia for $14 million. Why? Because electricity there is extremely cheap, allowing China to continue to profit from crypto without taking risks at home. Other Chinese companies associated with Bitmain are doing the same. Cheap energy in developing countries means that miners have higher profits and China maintains its influence in the market.
In some regions, such as Ethiopia, a kilowatt-hour costs only about $0.04. That’s almost ridiculously low when compared to Europe or the US. Many miners are taking advantage of this and expanding their capacity there. From China’s perspective, it’s simply smart business.
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China will not open its crypto market just like that – and here are the reasons why
Although mining is banned at home, China’s influence on the market remains strong. In 2025, for example, Kazakhstan launched the first regulated offshore stablecoin pegged to the yuan, AxCNH. This shows that China is monitoring and using blockchain, but adapting it to its own needs. This is not a free adoption of cryptocurrencies, but a strategic move that strengthens its influence in the global financial system.
So the myth that China will soon open up to crypto is simply wrong. On the contrary, China is actively using mining and strategic investments to advance its geopolitical and economic goals. It is clear that even though mining is banned at home, China’s influence on crypto markets is still enormous. And every investor should be aware of this before getting caught up in media speculation.
Could it have been intentional? The myth of China as a crypto scam
But why did it all happen? Sometimes it is interesting to look at popular conspiracy theories. They can show us certain aspects that we might otherwise miss. This also applies to rumors about the “opening of the market in China.”
In 2024, accounts appeared on Platform X, formerly Twitter, promoting cryptocurrencies while amplifying reports from official Chinese channels. Many of them appeared to be bots. They spread information that supported Chinese propaganda, but at the same time increased interest in cryptocurrencies. Some analysts call this “spamouflage” — the spread of misinformation that also serves as a marketing impulse for specific assets.
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It’s a popular theory — but these tactics are used in the crypto world
The reason why such things happen is clear. When news of China’s possible opening appears, investors start buying quickly. The price rises. And those who have information or algorithms for quick reactions sell at the right moment and make a profit. Once the news turns out to be false, the market corrects itself, and some of the speculators make money again. It’s actually a legal form of manipulation, except that the goal is quick profit.
Other theories say that spreading myths about China could have been intentional for geopolitical reasons. China itself may have an interest in other players overestimating its influence on the market and acting accordingly. When the market reacts in panic, China can continue to strategically strengthen its mining projects and foreign investments without opening anything at home.
We are in an information-economic war, and every piece of misinformation costs us something
It is clear that disinformation has real consequences. It can influence investors’ decisions, cause volatility, and damage confidence in crypto markets. That is why experts strongly recommend verifying news, relying on real data, and not acting impulsively based on tweets or speculative articles. Cryptocurrencies are still susceptible to manipulation, and those who understand how information circulates have an advantage over the market.
So when someone claims that China will soon open up to crypto, remember that this is most likely a myth. It may be deliberately spread for profit or geopolitical strategy. The reality is that China continues to play its cards, mining and investing abroad, while using misinformation to stir up the market a little. For investors, it is therefore most important to follow the facts, think critically, and not get caught up in short-term speculation.
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