Woofun AI reports that Coinbase has quietly enabled account registration for users in mainland China, a move discovered by social media users on July 14 and confirmed by ChandlerZ of Foresight News. This operational shift allows individuals residing in mainland China to complete identity verification using domestic resident ID cards and local addresses, effectively bypassing the previous requirement for a Chinese passport and a Hong Kong address. The change marks a significant deviation from Coinbase’s prior exclusionary practices, which had largely barred ordinary mainland residents from accessing the platform due to stringent geographic and documentation constraints.

The new Know Your Customer (KYC) mechanics have been streamlined to accelerate user onboarding. Wu, who verified the details with Coinbase employees, noted that the entire verification process can now be completed in approximately one minute. Previously, the platform mandated that users submit a Chinese passport alongside proof of a Hong Kong address, a combination that most mainland residents could not provide. By accepting Chinese resident ID cards and mainland addresses, Coinbase has lowered the barrier to entry, enabling a broader segment of the population to access its services. This efficiency gain is critical for capturing users who were previously locked out by complex verification protocols.

Market reaction to the discovery was immediate, with COIN shares rising by over 2.6% on the day of the announcement, closing above $160. Despite the positive market sentiment, Coinbase has maintained official silence regarding the policy change. Mary-Kate Collins, the international communications director, did not directly address the shift in mainland ID verification rules when contacted by BeInCrypto. Instead, she stated that "Coinbase International Exchange allows users from over 100 countries to register and trade various products, including cryptocurrencies, stocks, and commodities." This response referred to the offshore trading platform without clarifying the specific relaxation of requirements for mainland Chinese users. As of press time, Coinbase’s help page still lists passports as the only accepted identification for China, with address verification marked as "Not available," and no mention of ID cards.

Financial performance data reveals the strategic urgency behind this expansion. Coinbase’s share of global cryptocurrency trading volume increased from 3.2% a year earlier to 6.4% in 2025, reaching a record high of 8.6% in the first quarter of 2026. During the same period, derivatives trading volume grew by 169% year-on-year, and crypto assets held on the platform accounted for about 12% of the global total.

However, revenue declined by 31% to $1.41 billion in Q1 2026, resulting in a net loss of $394 million. The combination of record-high market share and significant net losses indicates that Coinbase requires increased trading volume to cover revenue gaps, driving the need to tap into new user bases.

Woofun AI data shows that the competitive landscape remains dominated by Binance and OKX. In 2026, Binance accounted for 37% of global centralized exchange derivatives trading volume, while OKX held 16.8%, and Coinbase trailed at 6.74%. Binance’s own figures released on July 14 showed that registered accounts had risen to 323 million, with cumulative trading volume reaching 156 trillion dollars. In the mainland Chinese user market, Coinbase was virtually non-existent before this adjustment. The current product offerings suggest that the most accessible group for this expansion are users who already hold crypto assets, such as USDT, USDC, and BTC. By allowing mainland ID cards, Coinbase aims to acquire assets from Binance, OKX, and self-custody wallets, directly challenging the dominance of these competitors.

Regulatory risks remain severe, as China’s ban on cryptocurrency activities has intensified. In September 2021, the PBOC and nine other ministries issued a document classifying all cryptocurrency-related activities as illegal financial activities, explicitly banning foreign exchanges from serving mainland Chinese residents. On February 6, 2026, seven Chinese industry associations expanded the ban to include stablecoins and the tokenization of RWA, reiterating that cross-border crypto transactions are illegal. The notice required internet companies to block and report crypto-related content, emphasizing the principle of "same business, same risks, same rules." Offshore structures involving Chinese assets must now be registered or approved in advance, further tightening the regulatory net around platforms like Coinbase.

The securities sector provides a precedent for such enforcement actions. On May 22, the CSRC and eight other departments announced investigations into Futu, Tiger Securities, and Changqiao Securities for providing cross-border securities trading services to mainland residents without permission. Futu was fined 1.85 billion yuan, while Tiger Securities was fined around 410 million yuan, including confiscation of illegal gains. A two-year rectification plan prohibited existing mainland users from opening new positions or depositing funds starting June 12, allowing only one-way sales and withdrawals.

After the rectification period, foreign institutions must shut down all websites and trading software targeting mainland China. Futu now requires proof of permanent residence abroad for registration, and Tiger Securities no longer accepts accounts from mainland residents. Analysts estimate that these platforms hold assets worth between $27 billion and $29 billion among their mainland user base, highlighting the scale of potential enforcement actions.

Legal leadership changes at Coinbase add another layer of complexity. On July 9, Paul Grewal, the chief legal officer who had held the position for six years, announced his resignation. During his tenure, Grewal led Coinbase’s multi-year lawsuits against the U.S. SEC. His successor is Molly Abraham, the current vice president, who will take charge of the legal team as general counsel. The timing of Grewal’s departure, just five days before the discovery of the mainland registration channel, suggests a potential shift in legal strategy. As a Nasdaq-listed company regulated by the SEC, Coinbase faces higher compliance costs and reputational risks if Chinese regulators take action, compared to offshore competitors like OKX.

The strategic ambiguity surrounding this move is evident in Coinbase’s lack of official communication. The absence of announcements, updates to the help page, and evasive responses from executives suggest that the company is leaving room to withdraw the change at any time. This cautious approach allows Coinbase to test the waters in the mainland Chinese market while maintaining plausible deniability. The decision to lower registration barriers for mainland users is highly strategic, aiming to capture market share from Binance and OKX despite the significant regulatory risks. This marks a bold but precarious step in the ongoing exchange war, where KYC requirements have become a key battleground for user acquisition.