Chinese Crypto Crackdown Slams Into Gear: Why Beijing is Attacking Crypto Again?

[Ben Graham]

China’s central bank has moved to shut down speculation that it may soften its tough position on digital assets, even as some voices inside the country argue that authorities should allow Bitcoin mining to resume.

According to a report by Caixin, the People’s Bank of China (PBoC) summoned officials from multiple state bodies, including government departments, internet watchdogs, and judicial system members, to reaffirm Beijing’s stance on cryptocurrency oversight.

Despite steady claims within China and abroad that illicit mining activity is rising, there is little sign that the world’s second-largest economy is preparing to welcome Bitcoin back anytime soon.

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Why Did China’s Central Bank Call an Emergency Meeting on Crypto Trading?

The central bank said it convened the gathering on November 28 as part of an effort to “coordinate measures to tackle speculation” in crypto trading.

Those who attended underlined how firm the message was meant to be. 

Participants included representatives from the national public prosecution service, the country’s highest court, leading financial supervisors and internet regulators, major policy agencies, and three separate government ministries.

Local outlet Guandian reported that the PBoC chose to publicize the meeting because speculative trading in digital assets had “returned” inside China.

Beijing first ordered banks in 2021 to identify, block, and report any crypto-related transactions. That move was followed by a nationwide ban on mining.

The PBoC told those present they should strengthen joint action and “improve regulatory measures and legislation” to step up enforcement against cryptocurrency activity.

Officials were also urged to keep closer watch over capital movements, expand data-sharing systems, upgrade surveillance tools, and “strike hard” at what the bank described as illegal and criminal practices linked to crypto.

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How Much Bitcoin Mining Is Still Happening in China After the Ban?

According to the central bank, these steps are necessary to “safeguard public assets” and preserve stability in China’s economic and financial system.

Figures from mining infrastructure firm Luxor Technology show China still accounts for more than 14% of the global Bitcoin hashrate. 

Analysts say most, if not all, of that activity likely comes from underground operations. Only the United States and Russia currently rank ahead.

The South China Morning Post reported that academics have recently renewed calls for policymakers to review the country’s strict stance on mining.

But the paper also cited David Zhang, a researcher at Trivium China, who argued that Beijing’s ambitions in artificial intelligence leave little room for heavy power users such as crypto miners.

Yang Liu, a partner at DeHeng Law Offices, echoed that view. 

He said it was unlikely the government would want to “promote mining in the near term, much less participate in the industry directly.”

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