The cryptocurrency exchange Coinbase has had a difficult month as it has decided to discontinue all of its operations in Japan after experiencing a steady decline with no solution in sight. This comes after a similar action by Kraken, another cryptocurrency exchange.
Whatever the cause, this is surely devastating news for crypto investors in Japan. When one exchange decides to leave a market, it is always unfortunate, and we can only hope that another exchange will come up to fill the hole left by Coinbase.
Customers can currently enjoy Coinbase services and perks until February 16th, 2023, after which they will no longer be able to do so. For the ease of the users, the cryptocurrency exchange offers them to sell their holdings and move their fiat currency to a domestic bank account as well as move their crypto assets to other crypto wallets.
This shutdown comes as a bitter lesson of how quickly things may change and how necessary it is to take precautions while making investments in virtual currencies. Coinbase’s exit highlights the delicate nature of the crypto market where even reputable exchanges can be suddenly shuttered with no notice.
Why did Coinbase take this decision?
Due to severe financial regulations and a lack of public interest, Japan is currently lagging behind many other nations in the adoption of cryptocurrencies. However, if more favorable regulations were put in place, there is still scope for expansion.
When the business disclosed that it would be minimizing its workforce in January and reviewing the growth of its business in the nation, it made its intentions clear.
The cryptocurrency exchange also discovered ways to boost productivity and efficiency before this decision, but they failed to discover a solution and opted to wind up the operations. However, the company ensured to continue its review of business in the country.