Review of Japan’s virtual currency business
US-based major crypto asset (virtual currency) exchange Coinbase officially announced on the 18th that it will suspend transactions with existing Japanese customers and completely review its Japanese business.
The reason for reviewing the business in Japan is explained as changes in the market environment. Customers will be able to withdraw assets from Coinbase Japan until February 16, 2023, Japan time.
In addition, after February 17th, the virtual currency held by customers at Coinbase Japan will be automatically converted to Japanese yen. After the 17th, according to legal requirements, the remaining Japanese yen balance will be deposited with the legal affairs bureau.
What is coinbase
Major cryptocurrency exchange listed on NASDAQ. Founded in 2012, it quickly became a top venture in the cryptocurrency industry. The service for Japanese people started in August 2021.
Relation: What is the virtual currency exchange Coinbase | Information and points to note for investors
Coinbase is currently downsizing its business. On the 10th, CEO Brian Armstrong released the information that was communicated to employees, and clarified the policy to reduce operating costs and personnel. At that time, he said, “projects with a relatively low chance of success will be terminated.”
Bloomberg, which interviewed Nana Murugesan, an executive in the company’s business development and international division, reported on the 11th that Japan would be included in the reduction. At that time, Mr. Murugesan explained that the reason why Japan was included in the target was “to review international investment due to the recession in the digital asset area.”
Relation: Coinbase to end most of Japan business = report
What Coinbase announced this time was not a withdrawal from Japan, but a suspension of transactions with existing customers and a complete review of the business. “There is no change in our policy of doing business globally,” Murugesan told Bloomberg.
Relation: Coinbase Licensed in Ireland
Virtual currency exchanges based overseas
Armstrong explained that 2022 has seen a slump in the overall cryptocurrency market due to widespread macroeconomic conditions. On the other hand, he also expressed a optimistic view that recent developments such as fewer major competitors and improved regulation will be a tailwind for Coinbase in the long term. But it will take time to reap the benefits of that tailwind, he said.
Kraken announced last month that it would suspend its business in Japan on the 31st of this month and abolish its exchange business registered with the Financial Services Agency.
Based on the current situation surrounding the Japanese market and the sluggish global cryptocurrency market, Kraken found it difficult to invest the necessary resources to further grow its business in Japan. He explains that he has come to the conclusion that
Relation: Kraken Japan withdraws from Japan, abolishes crypto asset exchange business