Coinbase announced it has made the decision to shut down operations in Japan as well as conduct a thorough review of its business in the country.
Following the collapse of the cryptocurrency markets last year, crypto exchange Coinbase just announced that it is exiting the Japanese market. This represents the most recent phase of a considerable downturn.
The exchange states that the company’s other official branches worldwide are unaffected by the suspension of operations in Japan. Japanese users of Coinbase must withdraw their cryptocurrency and fiat funds by February 16.
In response to the crumbling market conditions, the firm also stated that it intended to conduct an in-depth review of its national operations.
Coinbase Refers To The Shutdown As A Macroeconomic Factor
In a blog post that was published on January 18, Coinbase stated that it was a difficult decision to discontinue operations in Japan. The company did announce that it will thoroughly investigate its operations in Japan and halt all business with existing customers.
Customers will have to work with the Legal Affairs Bureau to get their money back if they don’t withdraw their bitcoin holdings by February 16th. The company will convert its remaining cryptocurrency holdings for Japanese yen (JPY).
Coinbase believes that the severe macroeconomic issues and its plans to lower operational costs in 2023 are the reasons for ending operations in Japan. CEO of Coinbase Japan Nao Kitazawa and vice president Nana Murugesan said:
We have made the tough decision to thoroughly review our existing business in Japan and terminate transactions with existing customers because of changes in the market environment.
-Coinbase’s Japan statement
It has also given Japanese consumers a number of options for removing all of their cryptocurrency assets from the exchange, in addition to a withdrawal deadline.
The company advised users that they might withdraw their cryptocurrency holdings to cryptocurrency exchanges, Coinbase Wallet, or other self-hosted wallets.
Layoffs At Coinbase In The Midst Of A Bear Market
The closing of the exchange follows its decision to lay off 20% of its global workforce, the most recent layoffs at the San Francisco-based company as it struggles to recover from the collapse of crypto assets.
The layoffs come after the company downsized its US workforce by about 25%. At the time, Coinbase stated that the releases were made to “weather downturns in the cryptocurrency market.”
Coinbase is leaving Japan as the country relaxes crypto regulations, prompting Binance, the world’s largest crypto exchange, to buy a local player to re-enter the market.