Coinbase is ending its operations in Japan due to the contagion affecting the crypto market. However, it believes that good times are coming for the exchange and crypto.
According to a Coinbase blog post on January 18, the crypto exchange will shut down its business in Japan. On that account, all Japan-based Coinbase customers have until 16 February to withdraw their funds. The closure results from the ongoing hardships the crypto industry is experiencing. The new decision comes days after the crypto exchange laid off about 940 employees.
Coinbase hopes to streamline the withdrawal process for all customers, keeping up with all the regulatory requirements. That includes separating digital assets and the Japanese Yen of its Japanese users. Likewise, the company is halting all fiat deposits as of January 20.
Meanwhile, there are different options customers can choose to withdraw their funds, including third-party services and the Coinbase wallet. Also, they can decide to change their digital assets into their local currency and withdraw to local banks. The first pathway is the best for those who do not wish for this option.
If some users do not make their withdrawals on February 17, Coinbase will convert their assets into JPY. Afterward, it will transfer to a Guarantee Account handled by the Legal Affairs Bureau. Also, they will coordinate with the bureau to acquire their money.
Coinbase talks about its decisions
In another blog post from January 10, Coinbase CEO Brian Amstrong explained the tough decisions the exchange had to make this year. One note was what caused the current market conditions and the possible continuation of the FTX contagion. However, it does not see this setback as the end of crypto or the success of its business. If anything, it is an excellent opportunity for the future.
All the conclusions it came to came from gauging the markets: all bullish, bearish, or base. In that case, cutting the exchange’s expenditure was necessary. That included the layoff. However, Coinbase assured all affected parties that it had no connection to their performance in the industry. If anything, the exchange appreciates their efforts in ensuring the increased trust of users in its business and crypto.
Compensating and planning ahead
Coinbase offered certain compensation to every employee who lost their job to make things easier during the transition. Furthermore, the firm will connect them to Talent Hub to help with future job opportunities. Coinbase also added that it believes in the talent its former employees have in the industry.
As for the way forward, Coinbase believes that the current state of the situation will remove the bad companies from the mix. It also agrees that there are always ups and downs in the industry during its progress. However, according to Brian Amstrong, the good is yet to come, and more to expect from Coinbase.
