China’s underground crypto economy reached at least $176 billion during the 12 months through June 2026. 59.1% of this activity now flows through domestic peer-to-peer transfers, a level 3.5 times higher than the previous period. Stablecoin turnover hit 33.2 times annually, more than triple the global benchmark of 9.3, suggesting heavy reuse as transactional liquidity. Monthly stablecoin transfers rose from roughly $240 million in March 2025 to almost $5 billion a year later, concentrated across individual and small-business transaction sizes. Chainalysis links this migration to tighter integration of China’s social-credit system with financial and internet infrastructure, which may be pushing some users toward transactions outside monitored channels.
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