Tips:
- Coinbase halts operations in Japan citing market conditions as the cause
- Bank of Japan’s yield curve control policy remains unchanged for the Japanese Yen
- Consumers only have one month to take out money from the trading platform.
Coinbase, the world’s largest cryptocurrency exchange, announces the halt of crypto operations and services in Japan due to market volatility. The Japanese users have until Feb 16 to withdraw all their digital and fiat assets from their accounts.
After Kraken, Coinbase is also halting its operations in Japan.
In its official statement, the exchange said it will be reviewing its business in the Asian country and will try to make the process of withdrawal as smooth as possible.
Japan is among the leading countries when it comes to Web3 adoption. According to Chainalysis, the country ranked 26th in crypto adoption in 2022. However, Coinbase is unable to handle the market burdens to properly operate in the country.
Japanese users are now forced to transfer their funds to other Virtual Assets Service Providers, Coinbase wallet, or any other crypto wallet. They can also send JPY to their domestic banks.
If users fail to personally transfer their funds, Coinbase will convert them into JPY after Feb 17. The converted JPY will be sent to a
“Guaranty Account at the Legal Affairs Bureau.”
“We want to assure you that we have segregated the Japanese Yen and crypto assets of our customers in custody in compliance with the regulations,” the statement reads.
FTX collapse and bear market have caused major financial losses to the crypto exchanges and firms. Coinbase also recently laid off 20% of its staff along with Crypto.com and Genesis.
