Asia Crypto Roundup: China's P2P Stablecoin Wallets Surge 43x, Korea Hits $449B Economy
China's stablecoin wallets explode 43-fold despite government bans
The number of unique wallets sending peer-to-peer stablecoin transactions in China grew 43 times between the first quarter of 2024 and the second quarter of 2026, according to blockchain analytics firm Chainalysis. A stablecoin is a cryptocurrency designed to hold a steady value, usually pegged to the US dollar.
During the 2026 reporting period (July 2025 to June 2026), Chainalysis recorded $104.1 billion across 18.1 million transfers involving China's self-custodied stablecoin holdings. The holdings turned over 33.2 times per year — more than three times the global average of 9.3 — a pattern Chainalysis says is consistent with users treating stablecoins as working capital.
The report estimated China's total crypto economy at at least $176 billion, with domestic P2P activity accounting for 59.1% of the total, up from 3.5 times its share in the 2025 reporting period.
Key figures from the Chainalysis report
- China: 43x growth in P2P stablecoin wallets; $104.1 billion in transfers; $176 billion estimated crypto economy
- South Korea: $449.1 billion crypto economy, the largest in East Asia; 12.3% growth year-over-year
- South Korean exchange profits fell 78% in the first half of 2026
- Hong Kong: institutional platforms accounted for 16% of service inflows, nearly three times any regional neighbor
- Japan: DEX activity rose 200% since 2022, now making up 35% of service activity
What Chainalysis found across East Asia
Chainalysis ranked South Korea as East Asia's largest crypto economy at $449.1 billion, with activity growing 12.3% in the year to June 2026. Retail traders in South Korea showed a strong preference for AI-linked tokens, the report said.
Hong Kong stood out for institutional activity. The city received almost $24 billion in inbound business-to-business flows, and institutional platforms accounted for 16% of service inflows — nearly three times the share in any regional neighbor. Hong Kong issued its first stablecoin licenses in April 2026.
In Japan, decentralized exchanges (DEXs) — platforms that let users trade directly without a middleman — accounted for nearly 35% of service activity, the highest share among mature East Asian markets. Most DEX swaps were between $10 and $1,000.
South Korean exchanges see profits plunge 78%
Despite the growth in overall crypto activity, South Korean exchanges struggled. Operating profits fell 78% in the first half of 2026, according to the Korea Financial Intelligence Unit (KoFIU). Average daily trading volume fell 44%, market capitalization dropped 33%, and won-denominated deposits fell 35% compared to the previous six months.
Exchange sales declined 41% over the same period, even as the number of accounts eligible to trade rose slightly by 0.4%.
South Korea moves toward tokenized securities framework
Securitize, a tokenization platform, saw its stock jump 8% after announcing a partnership with South Korean technology company LG CNS. The two companies signed a memorandum of understanding to develop tokenized assets and digital asset infrastructure for South Korean financial institutions.
The partnership comes as South Korea prepares to implement new rules for tokenized securities. The Financial Services Commission proposed regulations governing the issuance and circulation of tokenized stocks, bonds, funds and other securities in October 2026, with the framework set to take effect in February 2027.
Singapore banks expand crypto custody and payment services
Standard Chartered announced plans to launch digital asset custody services for institutional clients in Singapore. The bank will custody select cryptocurrencies, stablecoins and tokenized real-world assets for qualifying institutional and corporate clients.
Singapore-licensed exchange Independent Reserve added cross-border payment tools allowing businesses to make fiat and stablecoin payouts in more than 20 currencies. It also launched crypto derivatives trading for sophisticated investors through its subsidiary ReserveX.
Payward, the parent company of Kraken, partnered with Singapore Gulf Bank to enable round-the-clock institutional crypto settlement.
Hong Kong reaffirms crypto licensing timeline
Hong Kong Secretary for Financial Services and the Treasury Christopher Hui told a policy briefing that the government will submit an amendment bill "within this year" to establish a broader licensing framework for digital asset activities, including trading, custody, advisory and management services.
Japan adds Garantex to Russia sanctions list
The Japanese government added Russian cryptocurrency exchange Garantex to its expanded list of sanctions against Russia, citing the continuing war in Ukraine. Garantex was previously sanctioned by the US, the EU and other jurisdictions for helping Russian entities evade financial restrictions.
Japanese lawmakers also passed revisions in July bringing digital assets under the country's financial-markets framework.
Crime reports from the region
India's Central Bureau of Investigation arrested four people in an international tech-support fraud and extortion racket targeting US nationals. The scammers used fake computer pop-ups displaying toll-free "Microsoft" numbers. One Florida resident lost $440,000.
In Thailand, three armed assailants robbed a home in Bang Lamung, forcing a foreign resident to transfer crypto worth $820,000. They also took cash and three Rolex watches. Police suspect the robbers may be Chinese nationals.
Why this matters for crypto in Asia
The data shows that despite government bans and restrictions, crypto adoption in China continues to grow significantly through peer-to-peer stablecoin transactions. Meanwhile, regulated markets like South Korea, Hong Kong and Singapore are moving toward clearer frameworks for institutional crypto services, tokenized securities and custody solutions — signaling a shift toward formalization rather than suppression across parts of the region.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.