Coinbase Closes Its Japanese Doors
On January 18, Coinbase, one of the giants of cryptocurrency exchanges, confirmed a somewhat shocking move: they’ll be closing operations in Japan, effective February 16. Yes, that’s right! Just when you thought the crypto storm was calming down, another wave crashes in. Despite Bitcoin’s recovery, it seems the collateral damage from the FTX fallout is far from over.
A Deadline for Withdrawals
For those holding their breath (and their assets) on Coinbase Japan, it’s time to take action. Customers will need to withdraw their fiat and crypto holdings by February 16. Post-deadline? Anything left will be converted to Japanese yen. And hey, don’t think you’re going to sneak in a last-minute fiat deposit – those will be kaput starting January 20. It’s like they’re playing a game of ‘musical chairs,’ and the music has stopped!
Wallets and Withdrawals: The Only Options Left
Coinbase isn’t leaving its Japanese customers high and dry, though. They’re encouraging withdrawals and transferring assets to other platforms or wallets. Whether it’s a self-custodial wallet or the Coinbase Wallet, it seems like now’s the time to gather your digital coins and run (metaphorically speaking, of course). Liquidating portfolios and transferring assets to a bank account are also on the list of recommended actions.
The Trend: Major Exchanges Exiting Japan
Coinbase’s exit from Japan isn’t a standalone incident. It echoes the decision made by Kraken, another heavyweight in the cryptocurrency realm, which ceased operations in the country last year due to similar challenges. Both exchanges pointed to the dire state of the crypto market as a driving force behind their departures. It feels like a celebrity breakup – one leaves, and then the other dutifully follows. Can the crypto world get any more dramatic?
Job Cuts: The Harsh Reality
As if exiting Japan was not enough, both Coinbase and Kraken are also tightening their belts by reducing their workforce. Coinbase has seen job cuts of about 20% in January following an earlier 18% cut. Kraken, not wanting to be left out, laid off around 30% of its team post-FTX collapse. A tough time indeed for many in the crypto industry, where coins may rise, but job security seems to be falling.
The Looking Glass: What’s Next?
With Coinbase trading at $1.98 billion daily volumes, although down slightly since November 2022, and monthly visits falling over 6%, the future remains uncertain. Will they bounce back like Bitcoin or fizzle out like bad soda? Only time will tell but for now, customers in Japan need to brace for impact and make their moves.
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