Coinbase revealed shutting down operations in Japan and informing users to empty their balances by February 16. The crypto exchange firm announced that the continued decline in Japan’s market forced the halt of operations.
The San Francisco-based firm indicated via a January 18 post the difficult decision to shut down operations in Japan. Citing the prolonged market slowdown, Coinbase is winding down operations to review the business viability in the Asian country.
Phased Exit from Japan
The post reassured the firm’s commitment to easing the transition for its valued customers. Nevertheless, the firm warned that it would stop accepting fiat deposits on Friday, January 20. The post added that it would sustain withdrawal services of crypto holdings and cash till February 16.
The post portrays the closure as the most difficult decision made inevitable by the prevailing market conditions.
The firm disclosed its intentions of converting all remaining funds after the February 16 deadline lapses into Japanese Yen. The crypto exchange plans to remit the converted funds to an identified Guaranty Account controlled by the Legal Affairs Bureau. This will enable the customers to retrieve the balances.
Also read:Weak Crypto Market
Earlier last week, Coinbase declared the decision to scale down operations in Japan and only retain a skeleton staff to ensure the security of users’ funds and assets. Coinbase lamented that the market condition had worsened, unlike in June 2021 when its operating license was approved by the country’s Financial Services Agency.
Coinbase’s decision to shut down operations in Japan mirrors Kraken’s announcement to halt trading in the Asian market. The US-based exchange also cited the weak crypto market in its decision to exit the Japanese market by January 31.
Binance Seeking Return to Japan
The exit of the two US crypto exchanges is not deterring Binance from reentering Japan since quitting the market in 2018. The leading crypto trading platform indicated in September of seeking an operating license from the country’s Financial Services Authority (FSA). Later, it acquired Sakura, a local exchange, in November.
Binance cited the government support for digital transformation and Web3 companies as reasons for its return.
In particular, Binance lauded the crypto-friendly stance adopted by Japan’s prime minister Fumio Kishida whose vision to reinvigorate the nation’s economy features pro-crypto policies.
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