Coinbase To Halt All Operations In Japan• January 20, 2023 2:43 pm • Comments
The major crypto exchange just announced that it will be halting all of its operations in Japan following the announcement of layoffs last year.
The company cites volatile market conditions as the reasons for ceasing its operations in the country and this move follows the same path of another rival exchange called Kraken.
Kraken had also previously decided to cease all operations in Japan which may indicate that this market was not very beneficial for both companies.
Coinbase and Kraken are not the only exchanges that have decided to either downsize and other popular exchanges like Huobi and Crypto.com are also doing the same.
With that being said, it is at least a positive note that most of the major exchanges have still survived the market conditions with FTX being the only exchange in the industry failing.
This may indicate that exchanges and crypto are here to stay for the long term.
Coinbase quits Japan after less than two yearshttps://t.co/441mJp3QlI
— CoinGeek (@RealCoinGeek) January 19, 2023
Coinbase, Crypto.com and Huobi have all announced plans to lay off about 20% of their respective staff, while a source told Reuters earlier this month that Genesis, too, had cut jobs, equating to 30% of its workforce.
All Coinbase Japan customers will have until Feb. 16 to withdraw their fiat and crypto holdings, the company said in a blog post.
The company’s shares shed about 86% of their value last year, amid a brutal selloff in cryptocurrencies ranging from bitcoin to dogecoin that wiped out more than a trillion dollars from the sector.
The company has announced that customers in Japan have until February 16 to withdraw all of their crypto assets from the exchange.
So far, there has been no plans from the company to possibly reenter the market once market conditions have improved.
With so many companies either shutting down or downsizing, its important for investors to still recognize the fundamental value of digital assets and services related to them.
Based on that value, it is possible to understand where the overall industry is headed within the next 5 to 10 years.
It is likely that those crypto firms and projects that survive will be able to reap the benefits of the next crypto bull run which many experts are predicting will happen in 2024.
— Satoshi Club (@esatoshiclub) January 18, 2023
Coinbase entered the Japanese market after completing its registration with the country’s Financial Services Agency in June 2021.
The exchange is following in the footsteps of rival exchange Kraken, which ended its operations in Japan at the end of last year.
With the crypto winter biting ever harder in late 2022 following the collapse of FTX, crypto firms have been recalibrating their business models to adapt to conditions.
Last week, Coinbase said it is cutting around 20% of its workforce – about 950 employees – as part of its restructuring.
Shares of Coinbase were down 1.6% at $53.27 in premarket trading. The stock has risen 56% since the start of the year after dropping more than 80% last year.
Coinbase said it would halt operations in Japan due to volatile market conditions. Japanese customers will have time until February 16th to withdraw their assets.
— Cryptolaxy #StandWithUkraine 🇺🇦 (@Cryptolaxy) January 18, 2023
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