Cryptocurrency exchange Coinbase suspends operations in Japan, reviewing business in the country amid the ongoing crypto winter
Coinbase on Wednesday announced that it was suspending operations in Japan. Cryptocurrency lenders and exchanges, struggling to win the ongoing crypto slump, are facing drastic decisions to ensure that their businesses stay afloat. amid the ongoing crypto winter. Citing ongoing challenges with the crypto market, Coinbase has given users in Japan until February 16th to withdraw their holdings from their respective accounts. Not long ago, the popular cryptocurrency exchange Kraken, facing similar market pressure, also left the Japanese market.
“Due to market conditions, our company has made the difficult decision to suspend operations in Japan and conduct a comprehensive review of our business in the country,” the cryptocurrency exchange said. electronic multinational said in its announcement. official statement.
Coinbase Japan will no longer allow fiat deposits starting January 20.
After February 16, all remaining shares owned by Coinbase Japan will be converted to Japanese Yen (JPY) and will be transferred to the Guarantee Account at the Legal Office under the law of the land.
“Customers may choose to withdraw their crypto holdings to any other Virtual Asset Service Provider, Coinbase Wallet, or any other self-hosted wallet of their choice. Alternatively, clients can choose to liquidate their portfolio and withdraw JPY to a local bank account. If the client does not take any action by February 16th, they will have to coordinate with the Legal Office to get their JPY balance back,” the company said. more to its note.
Japan has, in recent times, begun to lean towards adopting a cryptocurrency approach to keep up with global fintech trends.
Despite domestic expansion efforts, Coinbase is now the second largest crypto company after Kraken leaving the Asian market.
According to CoinTelegraph reportcompanies have noted the crypto market is weaker in Japan than in other countries.
Meanwhile, Japan’s financial regulator has urge that the cryptocurrency sector should be regulated like traditional banks.
According to Japanese authorities, cryptocurrency technology is not to blame for posing a risk to the financial stability of crypto investors. Rather, it is the lack of rules governing the sector that has failed to make the sector safe to enter.
In November last year, the Bank of Japan said that it would work with major banks to help perfect its banking. CBDCnamed Digital Yen.
Japan could see its digital yen roll out more widely by 2026. Before that, the BoJ aims to test whether CBDCs work effectively in a disaster situation or without an Internet connection. are not.
