Coinbase Is Ceasing Operations In Japan To Cut Costs
Coinbase, a leading crypto platform, has recently announced it will be ceasing its operations in Japan. Ever since a difficult 2022 and the fall of multiple crypto firms, things are not been the same for Coinbase!
Coinbase has also recently announced plans to lay off 20% of its employees earlier this month. In addition, the company also made it clear that it will be doing an in-depth review of its operations in the country.
Brian Armstrong, the chief executive of Coinbase, also announced that the company would close projects with low chances of success.
Crypto Adoption Is Low In Japan
When compared with the rest of the year, crypto adoption is still very low in Japan. Especially considering the sheer size of Japan's economy, the current adoption rate of crypto is very low.
This was further hampered by the policies of the financial regulators, who severely limited the scope of exchanges.
Considering the difficult landscape of Japan, the Kraken crypto exchange also announced that it would be ceasing its operations in Japan in December. And now, even Coinbase is telling the same story!
According to Coinbase, customers can withdraw their funds (digital assets & fiat currencies) from the exchange till 16th February.
And if someone fails to withdraw their funds before this date, the funds will be converted into JPY. In addition, these assets will then be sent to the Legal Affairs Bureau's 'Guaranty Account.' Basically, Coinbase will follow the procedure as per the local laws of the country.
This news is coming at a time when Bitcoin, as well as other major cryptocurrencies, is staging a comeback. In addition, there are also healthy signs that the Fed will slow down its rate hike cycle. For now, there is little reaction from the markets about this development.
However, the fate of cryptocurrencies is still very vague due to a range of uncertainties in the country. We have already seen numerous exchanges leave the country, and many more are contemplating it.