Peer-to-peer stablecoin use in China has climbed sharply despite ongoing crypto restrictions, while South Korea now ranks as East Asia’s largest crypto economy, according to figures highlighted in Cointelegraph’s latest Asia Express roundup.
China’s P2P stablecoin wallets rose 43-fold, Chainalysis says
Chainalysis said the number of unique wallets sending peer-to-peer stablecoin transactions in China increased 43x between the first quarter of 2024 and the second quarter of 2026.
During the 2026 reporting period, which covered July 2025 through June 2026, the blockchain analytics firm recorded $104.1 billion across 18.1 million transfers tied to China’s self-custodied stablecoin holdings.
Those holdings turned over 33.2 times per year, more than triple the global average of 9.3. Chainalysis said the pattern was consistent with users treating stablecoins as working capital.
The firm’s new report estimated that China’s crypto economy is worth at least $176 billion. Domestic P2P activity made up 59.1% of that total, or 3.5 times its share in the 2025 reporting period.
China’s domestic stablecoin transfer volume added $4.9 billion in March 2026, the largest monthly increase shown in the data.
South Korea leads East Asia by crypto-economy size, but exchanges struggled
Chainalysis ranked South Korea as East Asia’s largest crypto economy at $449.1 billion. Activity rose 12.3% in the year to June 2026 from the previous year, with retail traders showing a strong preference for AI-linked tokens.
That growth did not translate into a strong first half for local exchanges. South Korean crypto exchanges posted a 78% drop in operating profit as trading activity, market valuations and customer deposits fell.
The Korea Financial Intelligence Unit, or KoFIU, said average daily trading volume at domestic virtual asset exchanges fell 44% from the previous six months. Market capitalization dropped 33%, won-denominated deposits fell 35%, and exchange sales declined 41%. The number of accounts eligible to trade edged up 0.4% over the same period.
Securitize gains after LG CNS partnership
Shares of tokenization platform Securitize rose 8% on Tuesday after the company announced 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 deal gives Securitize an early position in South Korea as the country moves toward a new framework for tokenized securities. Last week, the Financial Services Commission proposed rules covering the issuance and circulation of tokenized stocks, bonds, funds and other securities. The framework is scheduled to take effect in February 2027.
Singapore sees new custody, payments, derivatives and settlement moves
Standard Chartered, headquartered in London, said it plans to launch digital asset custody services in Singapore for institutional clients.
The bank said it will custody selected cryptocurrencies, stablecoins and tokenized real-world assets for institutional clients and corporate clients that qualify as accredited investors.
Standard Chartered said Singapore’s role as a 「leading financial and innovation hub」 is an important part of its 「global strategy.」
Singapore-licensed crypto exchange Independent Reserve has added cross-border payment tools that let businesses make fiat and stablecoin payouts. Accounts can be funded in Singapore dollars or US dollars, with payments available to suppliers or employees in more than 20 currencies. USDC and USDT are also supported.
The exchange has also launched crypto derivatives trading for sophisticated investors through its subsidiary ReserveX.
Separately, Payward, the parent company of Kraken, partnered with Singapore Gulf Bank to enable round-the-clock institutional crypto settlement.
Hong Kong reiterates end-2026 target for broader licensing bill
The Hong Kong government reaffirmed plans to submit an amendment bill before the end of 2026 to establish licensing regimes for digital asset trading, custody, advisory and management services as part of a broader crypto licensing bill.
According to a statement released by the Hong Kong government, Secretary for Financial Services and the Treasury Christopher Hui said at a Monday policy briefing that the government will submit an amendment bill 「within this year」 to create a broader framework for digital asset activities.
Hong Kong also stood out in Chainalysis’s Geography of Cryptocurrency report for institutional activity. Institutional platforms accounted for 16% of service inflows, nearly three times the share seen in any regional neighbor. The city received almost $24 billion in inbound business-to-business flows. Hong Kong issued its first stablecoin licenses in April.
Japan’s DEX activity has risen more than 200% since 2022
Chainalysis said decentralized exchanges accounted for nearly 35% of service activity in Japan, the highest share among mature East Asian markets.
The report said 65.7% of DEX swaps in Japan were between $10 and $1,000, and DEX activity has climbed more than 200% since 2022.
Japanese lawmakers passed revisions in July that bring digital assets under the country’s financial-markets framework.
Japan adds Garantex to expanded Russia sanctions list
Japan has added Russian crypto exchange Garantex to its expanded sanctions list against Russia, citing the continuing war in Ukraine.
A joint statement issued Friday by Japan’s Ministry of Foreign Affairs, Ministry of Finance and Ministry of Economy, Trade and Industry said officials added 33 organizations and nine individuals linked to Russia to an asset-freeze list that restricts payments and capital transactions with targeted parties.
Garantex had already been sanctioned by the United States, the European Union and other jurisdictions for helping Russian entities evade financial restrictions.
India-based fraud case targeted US seniors through fake tech support
India’s Central Bureau of Investigation arrested four people in what it described as an international tech-support fraud and extortion racket targeting US nationals.
The scam used fake computer pop-ups displaying toll-free 「Microsoft」 numbers. Victims who called were told their computers had been compromised or tied to illegal activity such as child pornography, and were then pressured for money. One Florida resident lost $440,000.
Armed home invasion in Bang Lamung forced crypto transfer
Three armed assailants robbed a home in Bang Lamung and forced a foreign resident to transfer $820,000 in crypto.
The attackers also took cash and three Rolex watches. Police suspect the robbers may be Chinese nationals.