Coinbase Suddenly Lost All Faith In The Japanese Crypto Market

Coinbase, one of the world’s largest cryptocurrency exchanges, announced on Wednesday that it will be halting operations in Japan due to volatile market conditions. This comes as a blow to the crypto industry, which has been facing a number of challenges in recent months, including plunging deposits, layoffs, and multiple legal hurdles.

Coinbase Japan customers will have until February 16th to withdraw their fiat and crypto holdings from the platform. After February 17th, the remaining crypto assets held by Coinbase Japan customers will be converted to Japanese yen. Fiat currency deposits will not be available from January 20th. The company said in a blog post that it will be conducting a complete review of its business in Japan.

This news follows rival exchange Kraken’s announcement that it would also be ceasing operations in Japan this month. Both companies cited a “weak crypto market” as the reason for their decision.

The crypto industry has been facing a number of challenges in recent months, including a waning investor appetite for crypto after major exchange FTX blew up in September. Higher interest rates and concerns of an economic downturn have also piled pressure on the crypto industry, as investors flee risky assets.

Coinbase, and Huobi have all announced plans to lay off about 20% of their respective staff, while Genesis reportedly cut jobs equating to 30% of its workforce. Despite Bitcoin returning to pre-FTX collapse price levels, the contagion still affects the industry, forcing Coinbase to close operations in Japan.

This is not the first time that Coinbase has faced difficulties in the Japanese market. The company originally started planning its Japanese expansion during a bear market in 2018. Despite this, the company had high hopes for the market, with Japan being one of the most active crypto markets in the world.

In quitting Japan, Coinbase follows in the footsteps of Kraken, another global crypto exchange that decided to cease operations in the country in late 2022. Both companies cited a “weak crypto market” as the reason for their decision.

It’s clear that the crypto industry is facing some significant challenges at the moment. The industry is still in its early stages, and it’s likely that we will see more companies struggling in the coming months. However, it’s also important to remember that the crypto market is highly volatile and can change quickly. We may see a resurgence in the industry in the near future, and companies that pull out now may regret their decision later on.

Overall, it’s a challenging time for the crypto industry, and it remains to be seen how things will play out in the long term. However, it’s important to remember that the industry is still in its early stages and that there is still a lot of potential for growth. Despite the challenges, the crypto industry will continue to evolve, and it will be interesting to see how things develop in the coming years.

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