Chinese Users Turn to Peer to Peer Stablecoins as Wallet Activity Jumps 43 Times Despite Bans

Even with strict limits on crypto trading, China has seen a huge rise in people sending stablecoins directly between wallets. Chainalysis says the number of unique wallets making these transfers grew 43 times from early 2024 to mid-2026. Over the year ending in June 2026, self custodied holdings tied to China handled 18.1 million transfers worth $104.1 billion. Coins changed hands 33.2 times a year, against a global average of 9.3, which points to people using stablecoins like everyday working capital. This happened after regulators tightened rules in February on unauthorized yuan-linked stablecoins and tokenized real world assets.

Size of China’s Crypto Economy

The report puts the country’s crypto economy at a minimum of $176 billion. Domestic peer to peer trading makes up 59.1% of it, which is 3.5 times the share seen a year earlier. March 2026 saw the sharpest monthly rise, adding $4.9 billion in domestic stablecoin transfers.

How South Korea and Hong Kong Compare

South Korea is still the biggest crypto market in East Asia at $449.1 billion, up 12.3%, and its retail traders lean toward AI-themed tokens. Hong Kong stands out for institutions, which supplied 16% of service inflows, almost three times the share of any nearby market. The city received nearly $24 billion in business-to-business flows and issued its first stablecoin licenses in April.

Japan’s Decentralized Exchange Boom and New Rules

In Japan, decentralized exchanges handle close to 35% of service activity, the highest among mature East Asian markets. Most swaps, 65.7%, fall between $10 and $1,000, and usage has grown over 200% since 2022. In July, lawmakers approved changes that place digital assets under the national financial-markets framework.