Peer-to-peer cryptocurrency transactions among Chinese users have grown significantly over the past year, even as China maintains strict restrictions on crypto operations. According to Blockchain intelligence firm Chainalysis, P2P transactions have increased 3.5-fold, with users relying on informal and over-the-counter platforms to conduct crypto trades.
Over the past two years, Chinese users have moved more than $176 billion in crypto transactions. Between Q1 2024 and Q2 2026, stablecoin turnover experienced a 43x increase, primarily occurring on underground and informal platforms.
Starting in March 2025, smaller transaction sizes showed dramatic growth. Transactions under $100 increased 996%, those between $100 and $1,000 rose 1,057%, and those between $1,000 and $10,000 grew 1,321%.
During the same period, 18.1 million P2P stablecoin transactions moved a combined $104.1 billion. China recorded a 33.2x annual stablecoin turnover compared to a global average of 9.3x, indicating that stablecoins are being used primarily as a payment method rather than as a store of value.
Chainalysis analysts attributed part of this growth to China's 2025 expansion of its social credit system, which monitors the trustworthiness of individuals and entities. Stablecoins allow users to bypass both government oversight and existing crypto restrictions in traditional financial systems.
Despite China's prohibition on crypto mining within its borders, China-linked mining entities continue to contribute approximately 15% of the global Bitcoin hashrate. Most of these mining operations are based outside China, in regions including Africa, Central Asia, and Latin America.
Regulators in China have also prohibited individuals and companies from issuing a digital yuan without authorization. This approach contrasts with neighboring jurisdictions such as Japan, Hong Kong, Singapore, and South Korea, which have pursued crypto regulation rather than outright restrictions.
