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Crypto exchange Coinbase to cease operations in Japan due to volatile market conditions
Coinbase officially announced on January 18th that it would seize operations in Japan and conduct a review of its business in the country due to volatile market conditions. The company said in a blog post that all Coinbase Japan customers will have until Feb 16 to withdraw their fiat and crypto holdings.
Cryptocurrency exchange Coinbase Global Inc. first announced job cuts amid waning demand for digital assets and then announced halting operations in Japan. On February 18th, the Coinbase Japan customer’s remaining cryptocurrency will be converted to Japanese Yen. The company noted that the clients would move their assets to any other virtual asset service provider, a self-custodial wallet, or a Coinbase wallet. They could close down their portfolios and withdraw assets to a domestic bank account. Coinbase reassured their customers that all users can withdraw their assets at the earliest convenience as the platform is committed to making the service termination as smooth as possible.
Coinbase’s move comes just weeks after another global crypto exchange, Kraken decided to cease operations in the country as it faced similar challenges in Japan, citing a ‘weak crypto market’. The cryptocurrency market is going through turbulent times as the plunging value of digital assets amid rising interest rates including the FTX exchange collapse. Kraken and Coinbase reduced their workforce with Kraken laying off 30% of its staff after the FTX exchange collapsed. Coinbase had already reduced staff by 18% in 2022 and has announced another 20% workforce cut in January. Several firms have suffered from waning investor appetite along with high-interest rates and economic downtown brought pressure on the crypto industry. The situation continued with layoffs, legal hurdles, etc. Other firms like Crypto.com and Huobi have also announced 20% layoffs of their staff. The company said that all Japan customers will have until Feb 16 to withdraw their fiat and Crypto holdings.