Coinbase Confirms it is Halting Operations in Japan
Cryptocurrency exchange Coinbase (COIN) said it is halting its operations in Japan, citing "market conditions" as the reason.
Customers have until Feb. 16 to withdraw their fiat and crypto holdings from the exchange, Coinbase announced on Wednesday. Fiat deposits will be halted on Jan. 20.
Coinbase entered the Japanese market after completing its registration with the country's Financial Services Agency (FSA) in June 2021. The exchange is following in the footsteps of its peer Kraken, who 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. Most recently, Coinbase cut around 20% of its workforce - about 950 people - as part of its restructuring.
After the workforce reduction, there were several reports that Coinbase is closing its Japanese operations.
Exchanges may also look to withdraw or downscale operations in certain markets, such as Coinbase and Kraken have done in Japan.
COIN stock is currently down 1.61% at $53.27 in pre-market trading at the time of writing, amidst a rally for the exchange which has seen its stock price increase some 56% since the start of the year.