Due To A Slump In Trading, Coinbase Stops Crypto Related Operations In Japan

The Coinbase crypto exchange originally planned its Japanese expansion during the 2018 bear market.

The Coinbase crypto exchange originally planned its Japanese expansion during the 2018 bear market.

Although Bitcoin returned to pre-FTX collapse prices, the contagion still affects the industry, forcing Coinbase to close its Japanese operations.

As a result of market conditions, Coinbase announced on Jan. 18 that it would end operations in Japan.

It will take until Feb. 16 for Coinbase Japan customers to withdraw their fiat and crypto holdings. Customers will no longer be able to make deposits in fiat currency after Feb. 17. Crypto assets held by Coinbase Japan customers will be converted to Japanese yen after Feb. 17.

Customers can also liquidate their portfolios and withdraw assets to domestic bank accounts by moving their assets to any other virtual asset service provider, a self-custodial wallet, or Coinbase Wallet.

Assuring customers that their assets will be available for withdrawal as soon as possible, Coinbase stressed that the platform is committed to making the termination process as smooth as possible.

Coinbase originally planned its Japanese expansion during a bear market in 2018, as previously reported.

Kraken, another global crypto exchange that stopped operations in Japan in late 2022, cited a “weak cryptocurrency market” as the reason for ceasing operations in Japan.

Coinbase and Kraken have also drastically reduced their workforces, with Kraken laying off 30% of its staff soon after the FTX exchange collapsed in November 2022.

Based on CoinGecko data, Coinbase’s daily trading volume is $1.98 billion, down about 1.3% since late November 2022. Coinbase’s monthly visits have declined more than 6% in the same time period.