China Banned Crypto, But Chinese P2P Transactions Just Exploded 43x. Here’s Why

A recent study has revealed that peer-to-peer (P2P) transactions among Chinese users have grown 3.5-fold in the past year despite the nation’s relentless crypto ban.

According to Blockchain intelligence firm Chainalysis, the Chinese are utilizing these P2P transactions as a workaround to the heavily restricted centralized crypto operations. 

Latest statistics on China crypto growth 

In the past two years, the Chinese have moved over $176 billion in crypto transactions. This was largely driven by a massive 43x growth in stablecoin turnover between Q1 2024 and Q2 2026, all happening in informal underground and over-the-counter platforms.

Additionally, starting in March 2025, the number of relatively small transactions grew tremendously. Transactions under $100 grew 996%, those between $100-$1,000 grew 1057%, and those between $1,000-$10,000 grew 1,321%. 

Even more, during the same period, analysts recorded 18.1 million P2P stablecoin transactions moving a total of $104.1 billion.

Furthermore, China recorded 33.2x annual stablecoin turnover, which is quite substantial as compared to the global average of 9.3x.

These numbers indicate China is predominantly utilizing stablecoins as a means of payment, rather than assets held as savings. Users also turned to it following the 2025 expansion of the social credit system – an initiative that monitors individuals’ and entities’ trustworthiness. Stablecoins bypass this government oversight, in addition to crypto restrictions in legacy systems.