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China is taking a strict stance against cryptocurrencies to prevent cash from leaving the country. In turn, people are simply not listening and continue to defy laws and mine crypto. In fact, China is the second most prolific crypto miner after the United States.

Of course, defying such laws in China can have dire consequences and indeed cryptocurrency miners in the country face jail time if caught. Even so, the growing demand for crypto in the country is seemingly worth the risk, according to a report from the Cambridge Centre for Alternative Finance (CCAF).

Chinese authorities have a blanket ban on cryptocurrencies, including trading and mining of platforms like Bitcoin and Ethereum. If an individual or organization is found to be doing either activity, they will face consequences.

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Resurgence

As the country deems crypto to be illegal, authorities hoped it would completely shut down the growing mining sector. However, while a reduction was seen, it seems it was temporary according to the report:

“It is probable that a non-trivial share of Chinese miners quickly adapted to the new circumstances and continued operating covertly while hiding their tracks using foreign proxy services to deflect attention and scrutiny. As the ban has set in and time has passed, it appears that underground miners have grown more confident and seem content with the protection offered by local proxy services.”

A new surge in mining activity means China is now the second biggest country in terms of mining capacity, taking 21.11 percent. The United States remains out in front, accounting for 37.84 percent of all mining activity.

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