29th September 2026
By Shubhii Verma
China ranked second globally for domestic peer-to-peer crypto wallet transfers in the 2026 Global Crypto Adoption Index, highlighting continued on-chain activity despite the country’s ban on domestic virtual currency exchanges and trading.
China placed 12th among 117 countries overall in the index, released on Sept. 23. Nigeria ranked first for domestic peer-to-peer activity, followed by China and Brazil.
The metric measures transfers made directly between individual wallets within the same country, excluding exchanges and other platforms. China ranked 14th for cross-border flows, 15th for on-chain holdings and 29th for funds flowing to exchanges and other services.
The index covered activity from July 1, 2025, through June 30, 2026. Its overall ranking uses a geometric average of four category scores, meaning strength in one area does not necessarily compensate for weaker performance elsewhere. Brazil ranked first overall despite not leading any category because it placed among the top four across all four measures.
Global Wallet Transfers Surge as Stablecoins Dominate
Domestic wallet transfers worldwide increased from $56.8 billion to $228.7 billion during the period, representing a 302.9% rise. Stablecoins accounted for 96% of that activity. Meanwhile, funds flowing to exchanges, decentralized finance platforms and other services declined from $9.30 trillion to $8.90 trillion.
The report did not disclose China’s actual domestic wallet-transfer amount. Country assignments for individual wallets were estimated using behavioral patterns, including interactions with exchanges serving only one country. Platform flows were allocated according to each country’s share of website traffic.
China Tightens Restrictions on Crypto and Stablecoins
China’s restrictions have tightened this year. On Feb. 6, the People’s Bank of China and seven other departments issued a notice stating that Bitcoin, Ether and Tether do not have legal-tender status. The notice prohibits domestic exchanges between fiat currency and virtual currencies, as well as exchanges among virtual currencies.
The People’s Bank of China has also classified stablecoins as virtual currencies. Entities and individuals cannot issue offshore stablecoins linked to the renminbi without approval from relevant authorities.
A separate rule governing online marketing of financial products takes effect Sept. 30. It classifies virtual currency issuance and trading as illegal financial activities and bars institutions and individuals from providing online marketing services or facilities for them.
On-Chain Activity Persists Despite Exchange Restrictions
Despite these restrictions, the adoption data indicates that domestic wallet-to-wallet transfers remain a significant part of China’s crypto activity. The findings also show how on-chain transactions can continue even when regulated access points are constrained. This ranking underscores how crypto users can maintain direct blockchain activity despite formal restrictions on exchanges and other regulated channels within the country.
