Even though China is producing more renewable energy than ever, with plenty left over for bitcoin mining, experts are doubtful the country will lift the nationwide ban established in 2021.

What's happening?

According to the South China Morning Post, bitcoin mining has made a resurgence despite the ban, claiming over 14% of the global market share in late 2025. 

This makes it the third-largest mining nation behind only Russia and the U.S., driven by cheap, abundant energy in certain regions and the rapid growth of data centers. 

The news outlet reported that China's solar and wind energy overproduction has exceeded 10% and 15%, respectively, in some areas. In a 2025 research paper, economics professor Guojun He recommended that the country use its abundant energy for crypto mining. 

Reuters explained that, while Beijing has reportedly relaxed its stance on bitcoin mining amid heightened activity following the passage of Hong Kong's StableCoins Bill and the U.S.'s GENIUS Act, experts say it's "unlikely that Chinese authorities would officially allow crypto mining," as the SCMP reported. 

In China, bitcoin mining mainly occurs in underground operations where miners exploit surplus renewable power in regions like Xinjiang, where local governments and state-owned enterprises may permit it to generate revenue. 

"From an energy perspective, China's power generation capacity has expanded rapidly in recent years, which — objectively speaking — has provided temporarily cheap electricity for some grey-market cryptocurrency mining operations," David Zhang, a policy and macroeconomics analyst at Trivium China, told the news outlet.

Why is underground bitcoin mining concerning?

While more data centers and cryptocurrency platforms worldwide are being powered by clean energy, polluting fuels such as natural gas and coal still provide the majority of electricity, according to a 2025 report by the International Energy Agency. 

The U.S. and China host the most data centers, with the latter's relying heavily on coal for energy. This is ironic, since it leads renewable energy growth, but the IEA explained that many data centers are clustered in the eastern provinces, where coal dominates the energy mix. 

As the country works to integrate more solar and wind power into the industry, an increase in bitcoin mining will have a harmful environmental impact in the meantime — one of the main reasons for the ban. 

What's the most you'd pay per month to put solar panels on your roof if there was no down payment? $200 or more 💰 $100 💸 $30 💵 I'd only do it if someone else paid for it 😎 Click your choice to see results and speak your mind.

Crypto and bitcoin mining require massive amounts of water and energy, with one United Nations University study reporting that China would have to plant 2 billion trees to offset the pollution generated by these activities over just 2 years. 

What's being done to regulate the industry?

Despite China's bitcoin mining ban still in place, albeit more flexible, and efforts to bring renewable energy online throughout the country, the industry is here to stay.

"I personally think government policies against mining will be gradually loosened, because you simply cannot stop such activities completely," Liu Honglin, founder of Man Kun Law Firm, told Reuters. 

Lawmakers in Nebraska and New York have also passed laws to regulate the industry by increasing taxes on mining facilities and requiring them to pause operations during peak electricity demand.

If you want to invest in crypto, consider green platforms that use less energy and give back to the environment through carbon offsetting and other sustainability initiatives.

Get TCD's free newsletters for easy tips to save more, waste less, and make smarter choices — and earn up to $5,000 toward clean upgrades in TCD's exclusive Rewards Club.