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      China Sees 43-Fold Increase in Peer-to-Peer Stablecoin Wallets Amid Regulatory Crackdown

      A recent report by Chainalysis reveals a significant surge in the use of peer-to-peer (P2P) stablecoin wallets in China, with the number of unique wallets engaging in such transactions increasing 43-fold from the first quarter of 2024 to the second quarter of 2026. This growth occurred despite ongoing regulatory restrictions on cryptocurrency activities in the country.

      From July 2025 to June 2026, approximately $104.1 billion was transferred through about 18.1 million self-custodied stablecoin transactions, indicating a shift in user behavior towards decentralized wallet-to-wallet transfers. The report highlights that domestic P2P activity now constitutes 59.1% of China's estimated crypto economy, which is valued at a minimum of $176 billion, marking a 3.5-fold increase compared to previous periods.

      The report also notes that the turnover rate for stablecoins in China reached an annualized rate of 33.2 times, significantly higher than the global average of 9.3 times. This suggests that stablecoins are increasingly being used as operational capital rather than being held as savings. Following the reinforcement of restrictions on unauthorized stablecoins in February 2026, a spike in domestic stablecoin transfers was observed, with a monthly volume of $4.9 billion in March 2026, indicating a robust demand for dollar-pegged tokens in a tightly regulated environment.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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