China's P2P stablecoins surge 43-fold, South Korea's crypto economy leads East Asia

According to Cointelegraph data, blockchain analytics firm Chainalysis noted a 43-fold increase in Chinese OTC (P2P) stablecoin wallets from Q1 2024 through Q2 2026. Over this period, transaction volume reached $104.1 billion, with a turnover rate more than three times the global average, signaling that users treat stablecoins as working capital. Based on this, the estimated scale of China's crypto economy is at least $176 billion.

South Korea emerged as East Asia's largest crypto economy with an estimated valuation of $449.1 billion, recording a 12.3% year-over-year increase in activity as retail investors show strong interest in AI tokens. However, Korean crypto exchanges face mounting operational pressures amid shrinking trading volumes and customer deposit outflows, causing their H1 2026 operating profits to plummet 78% year-over-year. Meanwhile, the Hong Kong government reaffirmed its plan to submit amended legislation by the end of 2026 to implement comprehensive licensing oversight for digital assets across their entire lifecycle.