Blockchain analytics firm Chainalysis released its 2026 Global Crypto Adoption Index on Sept. 23. China ranked 12th overall out of 117 countries.
The more striking result came in one of the four subcategories. China placed second worldwide in what the report describes as domestic peer-to-peer activity, trailing only Nigeria, while Brazil ranked third.
China placed second in domestic wallet transfers while ranking 12th overall
In the report, that domestic P2P category measures the amount transferred from one personal wallet to another personal wallet within the same country, without using an exchange or another platform.
China has banned domestic virtual currency exchange and trading services since 2021, and there are no legal crypto exchanges operating onshore. Against that backdrop, the country’s strongest ranking came from activity that does not pass through a platform at all.
The reporting period ran from July 1, 2025, to June 30, 2026.
Global domestic wallet transfers rose 302.9% in a year, with stablecoins accounting for 96%
Chainalysis said transfers between personal wallets within the same country climbed from $56.8 billion to $228.7 billion over one year, an increase of 302.9%. The article described that as roughly four times the previous level.
Of that total, 96% was in stablecoins.
Over the same period, funds flowing into exchanges, DeFi, and other services fell from $9.30 trillion to $8.90 trillion.
China ranked outside the top 10 in its other three categories
China’s remaining three subcategory rankings all came in below 10th place:
- Cross-border activity: No. 14
- On-chain balances: No. 15
- Service flows, including funds moving into exchanges and other platforms: No. 29
Chainalysis calculates the overall ranking by taking the geometric mean of the four scores. A very strong showing in one category does not fully offset weaker placements elsewhere.
Brazil was cited as an example. The report said Brazil did not rank first in any single category, but all four of its category rankings were in the top four, which put it at No. 1 overall.
The gaps between overall rank and category rank were also wide in other markets. The United States was No. 2 overall, but only No. 20 in domestic wallet transfers. Japan and South Korea ranked fourth and fifth overall, while their domestic wallet transfer rankings stood at No. 10 and No. 12, respectively.
The report did not disclose China’s transfer amount and said country attribution is estimated
The index publishes rankings, not actual country-by-country transaction amounts. Chainalysis said it first adjusts the raw figures by purchasing power parity, then converts the results for 117 countries into scores from 0 to 1 and ranks them accordingly.
The report did not provide the actual size of China’s domestic wallet-to-wallet transfer activity.
It also explained how country attribution is assigned. For personal wallets, the likely country is inferred from behavioral signals, such as whether the wallet interacts with an exchange that serves only one country. For platform-based flows, funds are allocated according to each country’s share of website traffic.
Chainalysis said its website traffic data is not perfect. It added that, although it tried to filter out VPN and bot traffic, some error may remain.
China tightened its crypto restrictions again in 2026
On Nov. 28, 2025, the People’s Bank of China held a coordination meeting on cracking down on virtual currency trading and speculation. In a statement issued after the meeting, it said that 「virtual currency speculative trading has shown signs of picking up」.
The central bank also classified stablecoins as a type of virtual currency. It said they cannot meet customer identification and anti-money laundering requirements and carry risks related to money laundering, fundraising fraud, and illicit cross-border fund transfers.
On Feb. 6 this year, the People’s Bank of China and seven other departments issued Circular Yinfā [2026] No. 42, replacing a 2021 notice. The new rules explicitly said Bitcoin, Ethereum, and Tether are not legal tender. They also banned the exchange of fiat currency for virtual currency and the exchange of one virtual currency for another within China.
The notice also said that, without approval from the relevant authorities, no entity or individual may issue offshore stablecoins pegged to the renminbi.
It further stated that if investment in virtual currency violates public order and good customs, the related civil legal acts are invalid, and losses must be borne by the investor.
Another measure is set to take effect on Sept. 30. In April, the People’s Bank of China and seven other departments released the Measures for the Administration of Online Marketing of Financial Products, which classify 「virtual currency issuance and trading」 as illegal financial activity. Under those rules, no institution or individual may provide online marketing services or facilitation for such activity.
Two key points raised in the article’s FAQ section
On the question of why China still ranks relatively high in crypto adoption despite its ban, the article’s answer was that China’s No. 12 overall position in the 2026 index was supported mainly by its No. 2 ranking in domestic wallet transfers, while the other three categories all ranked 14th or lower.
On methodology, the article said the Chainalysis index covers 117 countries and looks at four indicators: service inflows, domestic wallet transfers, cross-border activity, and on-chain balances. After adjusting for purchasing power parity, it takes the geometric mean of the four scores to produce the final ranking.