China Sees Surge in Peer-to-Peer Stablecoin Use Amidst Bans
Despite ongoing regulatory restrictions, China has experienced a dramatic increase in peer-to-peer (P2P) stablecoin transactions. New data reveals a 43-fold surge in unique wallets engaging in these P2P stablecoin transfers between the first quarter of 2024 and the second quarter of 2026, according to blockchain analytics firm Chainalysis.
During the 2026 reporting period, which spanned from July 2025 to June 2026, Chainalysis recorded $104.1 billion in transactions involving China’s self-custodied stablecoin holdings, spread across 18.1 million transfers. The firm noted that stablecoin holdings turned over 33.2 times annually, significantly higher than the global average of 9.3 times, suggesting users are treating stablecoins as a form of working capital.
Chainalysis’s latest report estimates China’s cryptocurrency economy to be worth at least $176 billion. Domestic P2P activity constituted 59.1% of this total, a substantial increase from its share in the 2025 reporting period. March 2026 saw the largest monthly increase in China’s domestic stablecoin transfer volume, adding $4.9 billion.
South Korea Leads East Asia’s Crypto Economy, Faces Exchange Challenges
South Korea boasts the largest cryptocurrency economy in East Asia, valued at $449.1 billion, according to Chainalysis. The country’s crypto market saw a 12.3% growth in the year leading up to June 2026, with retail traders showing a notable interest in AI-linked tokens.
However, the first half of 2026 proved challenging for South Korean crypto exchanges. Operating profits plummeted by 78% as trading activity, market valuations, and customer deposits declined. The Korea Financial Intelligence Unit (KoFIU) reported a 44% drop in average daily trading volume at domestic virtual asset exchanges compared to the previous six months. Market capitalization fell by 33%, and won-denominated deposits decreased by 35%. Exchange sales declined 41% over the same period, despite a slight 0.4% increase in the number of eligible trading accounts.
In a separate development, tokenization platform Securitize saw its shares rally significantly following the announcement of a partnership with South Korean technology firm LG CNS. The two companies have signed a memorandum of understanding to develop tokenized assets and digital asset infrastructure for South Korean financial institutions. This collaboration positions Securitize to capitalize on South Korea’s upcoming framework for tokenized securities, with proposed rules from the Financial Services Commission expected to take effect in February 2027.
Singapore Attracts Institutional Digital Asset Services
Standard Chartered, a multinational bank headquartered in London, has announced plans to offer digital asset custody services to institutional clients in Singapore. The bank will provide custody for select cryptocurrencies, stablecoins, and tokenized real-world assets to institutional and accredited corporate investors. Standard Chartered highlighted Singapore’s status as a “leading financial and innovation hub” as integral to its global strategy.
Singapore-licensed crypto exchange Independent Reserve has introduced cross-border payment tools, enabling businesses to conduct fiat and stablecoin payouts. Accounts can be funded in either Singapore or US dollars, facilitating payments to suppliers or employees in over 20 currencies, with USDC and USDT also available as payment options. The exchange has also launched crypto derivatives trading for sophisticated investors through its subsidiary, ReserveX.
Meanwhile, Payward, the parent company of Kraken, and Singapore Gulf Bank have partnered to facilitate round-the-clock institutional crypto settlement.
Hong Kong Advances Digital Asset Licensing Framework
The Hong Kong government has reiterated its commitment to submitting an amendment bill by the end of 2026 to establish licensing regimes for digital asset trading, custody, advisory, and management services. This initiative is part of a broader crypto licensing bill. Christopher Hui, Hong Kong’s Secretary for Financial Services and the Treasury, stated that the government intends to submit the amendment bill “within this year” to create a comprehensive framework for digital asset activities.
Hong Kong’s institutional activity was a notable highlight in Chainalysis’s Geography of Cryptocurrency report, with institutional platforms accounting for 16% of service inflows, nearly three times the share of its regional neighbors. The city attracted nearly $24 billion in inbound business-to-business flows. Hong Kong issued its first stablecoin licenses in April.
Japan Focuses on DEX Activity and Sanctions
In Japan, decentralized exchanges (DEXs) accounted for nearly 35% of service activity, the highest proportion among mature East Asian markets, according to the Chainalysis report. The firm noted that 65.7% of DEX swaps were between $10 and $1,000, and DEX activity has surged by over 200% since 2022.
Japanese lawmakers passed revisions in July that integrate digital assets into the country’s financial markets framework. In a separate move, the Japanese government has added the Russian cryptocurrency exchange Garantex to its expanded list of sanctions against Russia, citing the ongoing war in Ukraine. The sanctions list now includes 33 organizations and nine individuals linked to Russia, restricting payments and capital transactions with these entities. Garantex has previously faced sanctions from the US, EU, and other jurisdictions for allegedly aiding Russian entities in evading financial restrictions.
India Uncovers International Tech-Support Fraud Ring
India’s Central Bureau of Investigation (CBI) has arrested four individuals in connection with an alleged international tech-support fraud and extortion racket targeting US nationals. The scam involved fake computer pop-ups displaying toll-free “Microsoft” numbers. Victims who called were informed that their computers were compromised or linked to illegal activities, such as child pornography, to extort money. One Florida resident reportedly lost $440,000 to the scammers.
Thailand Reports Major Crypto Robbery
In Thailand, three armed assailants robbed a home in Bang Lamung, forcing a foreign resident to transfer cryptocurrency valued at $820,000. The robbers also absconded with cash and three Rolex watches. Police are investigating the possibility that the assailants may be Chinese nationals.
