Coinbase Suspends its Operations in Japan due to Market Crash

Coinbase Global Inc, a publicly traded American cryptocurrency trading platform has suspended its services in Japan due to current economic realities and its uncertain business outlook. 

According to the announcement on January 18, the exchange intends to conduct a thorough survey of its business in the country. However, customers have up until February 16, 2023, to withdraw their fiat and crypto holdings from the platform while fiat deposits will be stopped on January 20.

Despite the decision, the exchange has separated the Japanese Yen (JPY) and crypto assets of its customers in compliance with regulations and is doing everything best possible to make sure customers have less stress accessing their assets as soon as possible. 

With this, all Coinbase Japan customers have a right to withdraw their holdings into any other virtual assets service provider (VASP), Coinbase wallet, or any self-wallet of their choice. Additionally, the customers have the full right to dissolve their portfolio as well as withdraw their JPY into a domestic bank account. 

The crypto exchange also revealed its plans to convert any asset remaining to JPY after the due date for withdrawal elapse.

Following the conversion and in accordance with legal requirements and regulations, the exchange will transfer the leftover JPY to a safe account at the Legal Affairs Bureau. Afterward, any customer who has not withdrawn his assets will have to follow due process by liaising with the Legal Affairs bureau to get their assets.

Recall that the publicly traded exchange platform for the second time last year reduced its workforce due to the market crash.

Crypto Firms Forced to Make Difficult Decisions

As the crypto winter and market turbulence continue to bite harder, lots of crypto firms have been forced into making difficult decisions, ranging from reducing headcounts, suspending business operations, filing for bankruptcy, and lots more.

The Japanese crypto exchange Liquid group acquired by the bankrupt FTX exchange, paused trading operations on its platform late last year following an instruction from FTX bankruptcy representative S&C.

Equally, Huobi Technology Holdings LTD, also shut down its unit in Thailand as the local regulatory body revoked its operating license.