The number of unique wallets carrying out peer-to-peer stablecoin transactions in China increased 43 times from the first quarter of 2024 to the second quarter of 2026, as reported by blockchain analytics firm Chainalysis.
Massive growth despite regulatory pressure
Chainalysis recorded $104.1 billion in stablecoin transfers across 18.1 million self-custodied wallet transactions in China between July 2025 and June 2026. These holdings turned over 33.2 times annually, significantly above the global average turnover of 9.3. Analysts at the company noted that such high turnover rates typically point to stablecoins being used as working capital rather than stores of value.
Chainalysis observed that “China’s P2P-heavy crypto market now makes up 59.1% of all domestic crypto activity, a 3.5-fold increase compared to its share in the 2025 reporting period.”
The surge in P2P transactions comes despite Beijing’s continued clampdown on cryptocurrency. Authorities reinforced longstanding restrictions in February, introducing new regulations targeting unauthorized yuan-pegged stablecoins and tokenized real-world assets. China, the world’s most populous country, officially bans crypto trading, but the report estimates the nation’s crypto economy is now worth at least $176 billion.
Mini dictionary: Chainalysis, a New York-based blockchain analytics company, provides data and analysis on the cryptocurrency economy for regulators, law enforcement, and financial institutions.
Regional comparison: South Korea, Hong Kong, and Japan
China’s P2P-driven market is sharply distinct from neighboring economies. Chainalysis classified South Korea as East Asia’s largest crypto economy at $449.1 billion, with activity growing 12.3% over the previous period. Retail traders in South Korea showed notable interest in AI-related tokens, signaling a trend driven by the broader adoption of artificial intelligence technologies in digital assets.
| Country/Region | Crypto Economy Size | Main Activity | Unique Feature |
|---|---|---|---|
| China | $176 billion | P2P stablecoin transfers | High turnover, regulatory restrictions |
| South Korea | $449.1 billion | Retail trading | Preference for AI-linked tokens |
| Hong Kong | ~$24 billion (B2B inflow) | Institutional trading | Stablecoin licenses, high institutional inflow |
| Japan | Not specified | DEX (decentralized exchange) usage | Highest DEX share in mature markets |
In Hong Kong, institutional platforms accounted for 16% of all service inflows, nearly triple the proportion seen in regional neighbors. The city welcomed almost $24 billion in inbound business-to-business flows during the reporting period and issued its first stablecoin licenses in April, reflecting local authorities’ openness to regulated crypto infrastructure.
Japan’s crypto landscape featured the most significant decentralized exchange (DEX) usage among mature East Asian markets. Nearly 35% of cryptocurrency activity engaged DEXs, with activity on these platforms rising over 200% since 2022. Moreover, 65.7% of DEX swaps in Japan occurred in the $10 to $1,000 range, suggesting substantial retail participation.
Mini dictionary: DEX (Decentralized Exchange) is a cryptocurrency trading platform that allows users to swap assets directly and peer-to-peer, without the involvement of an intermediary or central authority.
In July, lawmakers in Japan approved revisions that integrate digital assets into the official financial-markets structure, strengthening regulatory oversight of cryptocurrencies.
