In 2012, a young Chinese entrepreneur, Jiang Xinyu—known as Friedcat—introduced ASICMiner, a groundbreaking concept on BitcoinTalk. The company sought to pioneer bitcoin mining hardware, capitalizing on China’s manufacturing dominance and cheap electricity. Though the venture eventually collapsed amid fraud accusations, it marked China’s early prominence in bitcoin mining.
However, a decade later, China’s cryptocurrency landscape has drastically shifted. The re-election of Donald Trump as US President has spurred renewed enthusiasm for cryptocurrency in the United States, propelling bitcoin’s price near $100,000. In stark contrast, China’s stringent regulations over the past decade have curbed bitcoin trading and mining, limiting its involvement in the global cryptocurrency race.
“The idea of decentralised money never really got a lot of traction in China,” explained Leonhard Weese, founder of the Bitcoin Association of Hong Kong and now with Lightning Labs. “But the idea of decentralised crowdfunding and start-ups was very attractive.”
Trump’s proactive stance on cryptocurrency has further widened the gap. His campaign promises, including the creation of a “strategic bitcoin reserve,” have won him significant support from the crypto community.
“Trump’s speech at the Nashville [bitcoin] convention during his campaign was met with a huge amount of support from the bitcoin community,” said Sandy Peng, founder of Scroll. “That was the first time a major candidate had really appealed to the crypto demographic for election purposes.”
Meanwhile, China’s clampdown on cryptocurrencies continues. Mining operations were virtually eliminated by 2021, and cryptocurrency trading remains heavily restricted. Experts suggest that Hong Kong’s financial markets could serve as a cryptocurrency sandbox for mainland China.
“If China doesn’t open up to crypto before Trump leaves office, then it probably won’t ever open up,” said He Yifan, CEO of Red Date Technology, which develops blockchain technology for China.
Despite its regulatory challenges, China’s influence on the cryptocurrency industry lingers. Major players like Bitmain and MicroBT remain dominant in global mining chip production. Yet, some believe the country has fallen behind in innovation.
“China woke up early but ended up lagging behind,” He added.
The shift toward the US has been amplified by Trump’s policies, capturing the imagination of cryptocurrency entrepreneurs worldwide. Even Chinese figures, such as Tron’s Justin Sun, are investing in Trump’s cryptocurrency initiatives.
The global cryptocurrency race remains dynamic, with the US capitalizing on its open regulatory environment while China grapples with how to re-enter the arena without compromising its financial controls. As Sandy Peng observed, “These pendulums swing wildly in one direction and then sometimes back to the other.”
