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China’s crypto ban fails as stablecoin P2P payments grow
Chainalysis estimates China saw at least $176 billion in crypto activity over the 12 months through June 2026, with 59.1% handled via domestic peer-to-peer transfers.
CryptoSlate reports that China’s underground crypto economy is increasingly moving to peer-to-peer stablecoin payments despite longstanding restrictions on digital assets.
Chainalysis estimates China generated at least $176 billion in crypto activity during the 12 months through June 2026, with 59.1% occurring through domestic peer-to-peer transfers rather than exchanges or other centralized platforms. The report says that share was 3.5 times higher than in the prior period, which differs from most major crypto markets where exchanges are the main entry and exit point.
CryptoSlate adds that the shift has been most pronounced in stablecoins, with domestic stablecoin payment activity accelerating around March 2025 and continuing to expand for 13 consecutive month-over-month periods. The amount of new activity each month rose from roughly $240 million in March 2025 to nearly $5 billion about a year later.
The outlet also notes that growth was concentrated across transaction sizes consistent with individuals and smaller businesses rather than solely large institutional transfers, reflecting a gradual migration toward wallet-to-wallet settlement inside China.