Will China Reconsider Its Bitcoin Ban? The $4 Billion Tax Debate

A high-ranking Hong Kong academic has criticized China's cryptocurrency mining ban, suggesting it may have cost the country billions in tax revenue and global industry leadership.

Wang Yang, Vice President of the Hong Kong University of Science and Technology, stated that China's ban on cryptocurrency mining was "not a very wise decision." According to Yang, the prohibition resulted in miners relocating to the United States, generating over $4 billion in tax revenue for the American economy instead of benefiting China.

The academic emphasized that China should reconsider its stance toward the cryptocurrency industry, particularly if Donald Trump—known for his pro-crypto positions—wins the upcoming U.S. presidential election. This recommendation comes as global competition in the digital asset space intensifies.

China began implementing various restrictions on Bitcoin miners in 2019, prompting a significant exodus of mining operations to countries including the United States, Kazakhstan, and South Africa. This migration fundamentally altered the global distribution of Bitcoin's computing power, with the U.S. becoming the dominant player in the sector.

Recent developments suggest a potential shift in China's approach. While maintaining strict cryptocurrency prohibitions on the mainland, authorities have been conducting a "crypto experiment" through Hong Kong's more open regulatory framework. Industry observers remain uncertain whether this signals a broader policy reconsideration or merely a contained testing ground for digital asset governance.

According to recent market intelligence, China continues to enforce its comprehensive cryptocurrency ban in 2025, though some analysts suggest there could be a partial lifting of restrictions for institutional use as early as Q4 2025. Despite the ongoing prohibitions, corporate adoption of Bitcoin has continued within the Chinese business landscape, demonstrating the persistent interest in digital assets despite regulatory challenges.