Even if bitcoin price is back to before the FTX crash, the sector is still being negatively affected by the contagion that forced cryptocurrency exchange Coinbase to shut down operations in Japan Is.
Due to the current market situation, Coinbase decided to publicly announce on January 18th that the company will be closing its offices in Japan and conducting an in-depth analysis of its operations in the nation. All Coinbase Japan customers will have about a month until February 16th to delete any Fiat currency or cryptocurrency assets from the Site.
After February 17th, any cryptocurrency assets still held by Coinbase Japan customers will be immediately converted to Japanese yen (JPY). After January 20, it will no longer be possible to make deposits in fiat money.
Underlines the principles that customers have the ability to transfer their assets to another virtual asset service provider, self-custodial wallet or Coinbase wallet, if they so desire. Clients also have the option to liquidate their portfolio and transfer their assets to a bank account in their home country.
Coinbase emphasized that the platform is dedicated to making service termination as seamless as possible, guaranteeing consumers that all users will be able to withdraw their funds at the earliest possible convenience.
Per previous reports, Coinbase began the planning stages for its entry into Japan in the midst of a weak 2018 market. Coinbase is the latest major cryptocurrency exchange to exit Japan, following in the footsteps of Kraken, which has decided to end its business activities in the country at the end of 2022.
The exchange said it experienced comparable issues in Japan, noting the country’s underdeveloped cryptocurrency sector.
Both Kraken and Coinbase have dramatically cut the size of their workforces, with Kraken terminating the employment of thirty percent of its workforce shortly after the failure of the FTX exchange in November. Coinbase, which had already reduced its workforce by 18% last year, said in January that it would cut a further 20% of its workforce.