American bitcoin exchange Coinbase announced termination of operations in Japan. The company cited unfavorable market conditions.
In early January, the platform announced a partial curtailment of operations and staff cuts in the local division.
“Due to market conditions, our company has made the difficult decision to cease operations in Japan and to study and analyze its business in the country. However, we are committed to making this transition as smooth as possible for our valued customers,” the statement said.
Starting January 20, Coinbase Japan will stop accepting deposits. Until February 16, users will be able to withdraw digital assets to any third-party wallet. As an alternative, they were offered to liquidate positions and receive funds in yen to an internal bank account.
In accordance with the law, after the specified period, the company converts unclaimed amounts in cryptocurrencies into fiat by customers. She will transfer the funds to the accounts of the Bureau of Legal Affairs. Users will be able to restore their balances already in yen through the agency.
“We would like to assure that we have separated the yen and our clients’ crypto assets held in custody, in accordance with the rules. We are committed to ensuring that all users have the ability to withdraw funds on demand,” Coinbase said.
In June 2018, the company announced the opening of an office in Japan for further expansion in the country.
In 2021, the exchange announced the launch of a “fully locally compliant” platform Coinbase Japan. The banking partner of the platform was financial giant Mitsubishi UFJ Financial Group.
Against the background of the crypto winter in June 2022, the American exchange fired 1,100 employees (18% of the staff). A new wave of layoffs took place in the fall – another 60 specialists lost their jobs.
In early January 2023, Coinbase announced a third round of layoffs, with plans to terminate employment with 950 employees.
Recall that in November 2022, Binance acquired the Sakura Exchange BitCoin exchange registered with the Japan Financial Services Agency to enter the local market.
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