It has been announced in a recent development that the popular cryptocurrency exchange, Coinbase, will be halting its operations in Japan as a result of market conditions. The company made the difficult decision to conduct a total review of its business in the country. Nevertheless, Coinbase reassured its customers of its commitment to making the transition as seamless as possible for everyone involved.
Setting Assets Apart
Coinbase said it has separated its customers’ Yen and their crypto assets in its custody in tandem with the stated laws, and it is committed to making sure that all customers are able to withdraw their assets at the earliest time possible. The company also announced that the money deposit functionality will be stopped on the 20th of January, 2023.
Customers of Coinbase Japan are said to have till the 16th of February, 2023 to pull out their money and crypto assets from Coinbase. The customers have the option of withdrawing their crypto assets to any other VAS Provider or any self-hosted wallet they choose. As an alternative, they can also choose to liquidate their investment portfolio and transfer their Yen to any Japanese bank.
Any crypto asset held in Coinbase on or after the 17th of February will be converted to Yen. A month after the 17th of February, Coinbase said it will transfer all remaining Yen into the Legal Affairs Bureau’s Account as required by law. All customers who do not take action by the 16th of February will have to liaise with the Office of Legal Affairs to get their funds.
This news comes as a surprise to many observers in the crypto community due to Coinbase’s strength and position as one of the largest cryptocurrency firms in the world. The company has operated in Japan for many years and has a considerably large client base in the country. The latest decision is due to the ongoing market conditions, which have challenged many in the crypto market.
Impact on Japan’s Crypto Market
The move might also impact the crypto market in Japan significantly because Coinbase is one of the top players in the economy. Nevertheless, it might be important to be reminded that other crypto firms still continue their operation in Japan, and customers are allowed to withdraw their crypto assets to these respective platforms.
It should also be noted that this decision in Japan does not affect other Coinbase activities in other countries. It will keep carrying out its business in other regions, and customers there will not be affected by the latest move.
Coinbase made the announcement that it will stop its activities in Japan as a result of the market situation. The firm assured its clients that it is committed to making sure that the transition does not negatively affect anyone. All customers have been given till the 16th of February, 2023 to move out all their Yen and crypto assets from the platform. The recent move might have a significant effect on the crypto market in Japan.