Chinese P2P Crypto Transactions Surge 43x Despite Nationwide Ban

A recent study by Chainalysis has uncovered a dramatic surge in peer-to-peer (P2P) crypto transactions among Chinese users, despite the country's strict crypto ban. The research shows that P2P transactions grew 3.5-fold in the past year, with Chinese users leveraging these informal platforms to bypass heavily restricted centralized crypto operations.

Between Q1 2024 and Q2 2026, stablecoin turnover in China exploded by 43x, totaling over $176 billion in crypto transactions over the past two years. The data also reveals a significant increase in smaller transactions, with those under $100 growing by 996%, transactions between $100-$1,000 rising by 1,057%, and those between $1,000-$10,000 increasing by 1,321%. During this period, 18.1 million P2P stablecoin transactions moved a total of $104.1 billion.

China's stablecoin turnover grew by 33.2x annually, far surpassing the global average of 9.3x. This suggests that stablecoins are primarily used as a payment method rather than a savings asset. The rise in stablecoin usage also coincides with the expansion of China's social credit system in 2025, which monitors individuals' trustworthiness. Stablecoins offer a way to bypass this government oversight as well as crypto restrictions in legacy systems.

Despite the ban on crypto mining, China-linked mining entities still account for 15% of the global Bitcoin hashrate, with many mining hubs set up outside China's jurisdiction in regions like Africa, Central Asia, and Latin America. Compared to other nations like Japan, Hong Kong, Singapore, and South Korea, China's crypto operations are heavily focused on stablecoins, while the other countries prioritize crypto regulation.