Coinbase Shuts Operation In Japan Citing Market Conditions

The cryptocurrency market, no matter the continuing “mini bull run,” continues to be a good distance from its 2021 levels, with corporations shedding staff and a few even closing operations. The newest on the list of firms halting services is Coinbase.  Per a recently published blog post by Coinbase, the crypto exchange company said it could be closing down its operations in Japan. 

The exchange said the halting of operations in Japan has no effect on its other official branches across the globe. Coinbase Japanese customers are to withdraw their crypto and fiat holdings by February 16. The corporate stated it could conduct a whole review of its business within the country following the market conditions closing in.

Coinbase Halts Operation In Japan, Cites Market Conditions 

Published on January 18, Coinbase stated within the announcement the operation halt in Japan is a difficult decision. Nonetheless, Coinbase will thoroughly review business in Japan and terminate transactions with existing customers within the country.

Customers who fail to withdraw their crypto holdings before February 16 may have to coordinate with the Legal Affairs Bureau to retrieve their balance. The corporate will convert all remaining crypto holdings to Japanese yen (JPY). In keeping with Coinbase, the rationale behind the shutting down of operations in Japan is on account of the acute market conditions and its plans to scale back operating expenses in 2023. 

Coinbase’s VP Nana Murugesan and Coinbase Japan CEO Nao Kitazawa said, “Attributable to changes out there environment, now we have made the difficult decision to completely review our current business in Japan and terminate transactions with existing customers. Nonetheless, we’re committed to creating this transition as smooth as possible for our valued customers.”

Except for giving a due date to withdraw funds, it has also provided Japanese customers with various options for withdrawing all their crypto holdings from the exchange. In keeping with the digital asset exchange firm, customers can withdraw their crypto assets to either Coinbase Wallet, other self-hosted wallets, or other cryptocurrency exchanges.

Coinbase Making It To The Headline In Recent Weeks

This isn’t Coinbase’s first news to make it to the headlines over the past few weeks. Every week ago, the exchange laid off about 1,000 of its employees as a part of a critical technique to weather down the crypto winter. As reported by Bitcoinist, this was the corporate’s third round of layoffs as macroeconomic conditions and chronic downside pressure the nascent sector.

Furthermore, the crypto exchange also made it to the headline earlier this week as XRP investors filed a category motion lawsuit against the cryptocurrency exchange. The rationale behind the lawsuit was on account of the corporate’s exception in distributing Flare Network Tokens (FLR) to XRP holders. 

COIN price is moving sideways on the 4-hour chart. Source: COIN on TradingView.com

While the corporate has continued to make it to the headline negatively over the past weeks, the exchange COIN stock price has carried on with a bullish trend, ending Tuesday with an added 8% to its value and up nearly 45% within the last five days.

COIN’s price is currently hovering around $54.14 on the time of writing, up 8.32% within the previous 24 hours.

Featured image from Freepik, chart from TradingView

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