China’s P2P Stablecoin Wallets Surge 43x Amid Crypto Restrictions
Despite China's strict crypto regulations, the country's peer-to-peer (P2P) stablecoin wallets experienced a remarkable 43-fold increase between the first quarter of 2024 and the second quarter of 2026. Chainalysis reported that during the 2026 reporting period, which spanned from July 2025 to June 2026, there were 18.1 million transfers involving self-custodied stablecoins, totaling $104.1 billion. The turnover rate of stablecoin holdings in China was 33.2 times per year, significantly higher than the global average of 9.3, indicating that users treat stablecoins as working capital.
Chainalysis estimated that China's crypto economy is worth at least $176 billion, with domestic P2P activity accounting for 59.1% of the total. This is 3.5 times its share in the 2025 reporting period. The growth in P2P stablecoin transfers was particularly notable in March 2026, which saw a $4.9 billion increase, the largest monthly rise recorded. This surge occurred despite China's reinforced restrictions on crypto trading, including new rules targeting unauthorized yuan-pegged stablecoins and tokenized real-world assets.
In contrast, other East Asian markets showed different trends. South Korea, ranked as the largest crypto economy in the region at $449.1 billion, saw a 12.3% growth in activity, with a strong preference among retail traders for AI-linked tokens. Hong Kong stood out for its institutional activity, with institutional platforms accounting for 16% of service inflows, nearly three times the share in any regional neighbor. The city received almost $24 billion in inbound business-to-business flows and issued its first stablecoin licenses in April.
Japan's crypto market was notable for its high share of decentralized exchanges (DEXs), which accounted for nearly 35% of service activity. Chainalysis reported that 65.7% of DEX swaps were between $10 and $1,000, and DEX activity had risen more than 200% since 2022. Japanese lawmakers passed revisions in July that bring digital assets under the country’s financial-markets framework.