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Cryptocurrency exchange Coinbase announced that it will be suspending all its operations in Japan due to volatile market conditions.
Crypto exchange Coinbase Global Inc. announced on Wednesday via a blog post that it will halt its operations in Japan due to a volatile and unpredictable market. According to the company’s announcement, all Coinbase Japan customers have until February 16, 2023, to withdraw their cryptocurrency and fiat holdings. Coinbase added that the fiat deposit functionality will be removed on January 20, 2023.
Due to market conditions, our company has made the difficult decision to halt operations in Japan and to conduct a complete review of our business in the country. However, we are committed to making this transition as smooth as possible for our valued customers.
Coinbase said that customers can choose to withdraw their crypto holdings to any other Virtual Asset Service Provider, Coinbase Wallet, or any other self-hosted wallet of their choosing. The firm also said customers can alternatively choose to liquidate their portfolio and withdraw their JPY to a domestic bank account. Coinbase added that any remaining crypto holdings held on Coinbase on or after February 17, will be converted to JPY. Coinbase will after a month following February 17, send any remaining JPY to a Guaranty Account at the Legal Affairs Bureau per legal requirements. Customers who do not act before February 16, will have to coordinate with the Legal Affairs Bureau to claim their JPY balance.
Kraken Withdraws from Japan
Coinbase is not the first exchange to suspend its operations in Japan. In late December, crypto exchange Kraken decided to close its operations in Japan and deregister from the Financial Services Agency (FSA), citing weak market conditions. Kraken said it made the decision as part of its efforts to focus on areas that align with its strategy and that would put Kraken in the best position for long-term success.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.