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Crypto exchange Coinbase has announced it is formally ceasing operations in Japan, describing the decision as a difficult one. It also intends to conduct a complete review of its operations in the country. Extreme market conditions were mentioned by Coinbase as the driving force behind the decision.
Coinbase officially announced that it will stop its business in Japan. The deposit function will be closed on January 20, 2023. Users must withdraw crypto assets or legal tender from Coinbase Japan before February 16. https://t.co/UDv1IzumbP
— Wu Blockchain (@WuBlockchain) January 18, 2023
''Due to market conditions, our company has made the difficult decision to halt operations in Japan and to conduct a complete review of our business in the country. However, we are committed to making this transition as smooth as possible for our valued customers," Coinbase wrote in an official blog post.
All Coinbase Japan customers will have until Feb. 16, 2023, JST, to withdraw their cash and cryptocurrency assets from Coinbase, according to a blog post on the company's website. Customers have the option to transfer their cryptocurrency assets to any other virtual asset service provider, the Coinbase Wallet, or another privately hosted wallet of their choice.
Customers also have the option to liquidate their holdings and withdraw their JPY to a local bank account. Any remaining cryptocurrency holdings held on Coinbase on or after Feb. 17 will be converted to Japanese Yen, according to the statement.
Although the company has not stated explicitly that it intends to leave Japan, only that it wishes to conduct a thorough evaluation of its operations, some market observers believe that the crypto exchange may leave the country.
Last week, speculation started making the rounds that Coinbase would close the majority of its operations in the Japanese market, following its plan for global job cuts. The exchange said earlier this year that it would be laying off 950 employees, or 20% of its current workforce.