Coinbase, one of the world’s largest Bitcoin exchanges, has decided to cease operations in Japan amid the decline in transaction volume. The exchange first started its operations in the country during the bear market in 2018.
Giant Bitcoin exchange withdraws from Japan
The US-based crypto exchange has decided to end operations in Japan as Bitcoin compensates for the FTX bankruptcy. Coinbase officially announced on January 18 that it will end its operations in Japan and completely review its business in the country due to market conditions.
Withdrawals expire on this date
All Coinbase Japan users must withdraw their fiat and cryptocurrencies from the platform by February 16. After February 17, cryptocurrencies remaining in the hands of Coinbase Japanese customers will be converted to Japanese yen. Fiat deposits will no longer be available from January 20.
The exchange stated that customers can move their funds to any other cryptocurrency exchange, personal storage wallet, or Coinbase Wallet. Clients can also sell their portfolios and withdraw their funds to a local bank account.
Coinbase stressed that it is committed to making the platform’s termination of service as seamless as possible, assuring customers that all users can withdraw their funds as soon as possible. Coinbase first started planning its expansion in Japan during a bear market in 2018.
Now leaving Japan, he is following in the footsteps of Kraken, another global crypto exchange that decided to cease operations in the country in late 2022. The exchange said it faces similar challenges in Japan, citing a “weak crypto market.”
Bitcoin exchanges shrink due to FTX-induced crisis
Kraken and Coinbase significantly reduced their workforce, laying off 30% of their staff shortly after the FTX exchange crashed in November 2022. According to CoinGecko data, Coinbase’s daily trading volume is currently $1.98 billion, down about 1.3% since late November 2022. Coinbase’s monthly visits fell more than 6% over the same period.
cryptocoin.com Kraken announced on November 30 that it had made one of its “most difficult decisions” and that it would reduce its global workforce by approximately 1,100 people, which is approximately 30% of the total workforce, under current market conditions. According to CEO and co-founder Jesse Powell, this decision has brought the stock market back to where it was 12 months ago.
Rough day at @krakenfx. Headcount rolled back 12 mos. Macro was already tough and we held out but recent industry woes diminished near-term optimism about a crypto rebound. Better positioned now. Glad we were able to take good care of our former colleagues. Been a privilege. 🙇♂️ https://t.co/xfwShapS2N
— Jesse Powell (@jespow) November 30, 2022
Like Coinbase, Kraken left Japan for the second time in December, citing “weak trading volume”. The crypto exchange deregistered as a crypto exchange operator with Japan’s Financial Services Agency on January 31. As a result, both Kraken and Coinbase will no longer serve their customers in Japan. Coinbase users must withdraw their crypto funds from the exchange by February 16.
