China’s crypto ban Is failing to stop a $176 billion P2P economy
Chainalysis estimates China recorded at least $176 billion in crypto activity in the year through June 2026, with 59.1% moving through domestic peer-to-peer transfers—a share 3.5 times higher than in the prior period. Stablecoin payments accelerated from March 2025, with sharp growth across small and mid-sized transfers. China-attributed wallets averaged $3.1 billion in stablecoins but transferred $104.1 billion across 18.1 million transactions, indicating frequent reuse as payment or settlement liquidity. Chainalysis suggests tighter integration of social-credit systems with financial and internet services may contribute to the shift, but stresses this is a hypothesis: blockchain data cannot establish users’ motives. The trend could complicate enforcement of China’s digital-asset restrictions as self-custodied tokens circulate outside conventional payment channels.
