Key Points:
- Due to the state of the market, Coinbase stated that it would be ceasing operations in Japan.
- The choice was made just a few days after the company declared it would start to wind down its activities there.
- The crypto exchange is coming to close as negotiations with the Japanese government have been concluded.
Due to the state of the market, Coinbase has suspended operations in Japan and has recommended users remove their assets from the platform, the company said on Wednesday.
In a statement, Coinbase said that it had been forced to take the tough step of ceasing operations in the nation and conducting a thorough review of its Japanese business. The exchange attributed the move to the state of the market at the time. Following the ruling, it declared that it would conduct a thorough post-mortem of its operations in the nation.
“Due to market conditions, our company has made the difficult decision to halt operations in Japan and to conduct a complete review of our business in the country. However, we are committed to making this transition as smooth as possible for our valued customers,” the company said in a blog post.
This Friday, January 20, fiat deposits to the exchange will end, and users can withdraw their cash and cryptocurrency holdings until February 16.
Any fund that is still available after this date will be converted to Japanese Yen and sent to a Guaranty Account at the Legal Affairs Bureau, where clients will be responsible for retrieving their own cash.
The choice was made just a few days after the business declared it would start to wind down its activities there. Nana Murugesan, vice president of business development at Coinbase, stated on January 11 that the company was not interested in M&A and would not be selling its Japanese division.
Murugesan stated at the time that the shutdown would wait until Coinbase had resolved all outstanding issues with the Japanese Financial Services Agency (FSA). In order for the business to guarantee the security of customer assets, a select few employees are scheduled to continue in their roles in the upcoming weeks.
After securing its registration with the nation’s FSA in June 2021, Coinbase entered the Japanese market. The exchange is following the lead of its rival Kraken, which stopped operating in Japan at the end of the previous year.
Most recently, as part of its restructuring, Coinbase laid off roughly 950 employees or about 20% of its staff.
Crypto enterprises have been adjusting their business strategies to the new reality as the crypto winter bites more in late 2022 after the failure of FTX. It looks like this event still has implications for the industry at the moment.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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Harold
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