Cryptocurrency exchange Coinbase on Monday announced the sad news that it has officially ceased operations in Japan and will conduct a complete review of its business in the country. Coinbase Japan customers can withdraw their crypto and fiat holdings until February 16. The remaining crypto holdings will be converted to Japanese yen (JPY) and customers will need to coordinate with the Legal Affairs Bureau to retrieve their balance after February 16.
In an official blog post on January 18, Coinbase announced that it has made the difficult decision to completely review its business in Japan and end transactions with existing customers. Coinbase said the decision factors in extreme market conditions and plans to reduce operating expenses in 2023.
“Due to changes in the market environment, we have made the difficult decision to completely review our current business in Japan and terminate transactions with existing customers. However, we are committed to making this transition as smooth as possible for our valued customers, said Coinbase VP Nana Murugesan and Coinbase Japan CEO Nao Kitazawa.
Coinbase has provided a convenient system to allow customers to withdraw their assets until February 16 Japan time. Customers can also withdraw their crypto assets to other crypto exchanges, Coinbase wallets, or other users' own wallets.
Alternatively, Coinbase Japan customers can liquidate portfolios and withdraw Japanese Yen to their local bank accounts. Starting February 17, crypto holdings on Coinbase will be converted to Japanese Yen and sent to an Escrow Account at the Bureau of Legal Affairs. Customers need to coordinate with the Legal Affairs Bureau to retrieve their JPY balance after February 16.
Last week, Coinbase CEO Brian Armstrong announced plans to cut an additional 20% of its global workforce to manage operating expenses. He also revealed closing some projects with a lower probability of success. Japanese operations were greatly affected by the termination decision.
Coinbase (COIN) stock price ended up 8% to $54.14 on Tuesday. The price of COIN has jumped almost 45% in the last 5 days.
