Coinbase suspends operations in Japan amid trading slump
Even though the price of Bitcoin (BTC) has returned to pre-FTX collapse levels, the industry-wide contagion has compelled Coinbase to shut down its Japan operations.
On January 18, Coinbase made a formal announcement stating that owing to market conditions, the company would be ceasing operations in Japan and conducting a thorough evaluation of its activities there.
All users of Coinbase Japan will have until February 16 to remove their fiat and cryptocurrency assets from the service. After February 17, all customers of Coinbase Japan will have their leftover cryptocurrency assets automatically converted to Japanese yen (JPY). Deposits made in fiat currency won’t be accepted after January 20.
Customers will be able to transfer the assets to any other virtual asset service provider, a self-custodial wallet, or the Coinbase Wallet, according to the company. Also, customers can liquidate their holdings and transfer their assets to a local bank account.
Coinbase emphasized that the company is committed to making the service termination as seamless as possible, promising clients that all users can withdraw their money as soon as is practical.
Coinbase initially began strategizing its entry into Japan during the 2018 bear market.
Coinbase leaves Japan in the wake of Kraken, a different international cryptocurrency exchange that opted to stop doing business there in late 2022. The exchange cited a “weak crypto market” as the reason it encountered similar difficulties in Japan.
Both Kraken and Coinbase have drastically cut back on staff, with Kraken firing 30% of its employees not long after the FTX exchange failed in November. Coinbase, which had previously slashed its personnel by 18% last year, said in January that it will further reduce its headcount by 20%.
