Coinbase faces another blow as it winds down most of its Japanese operations

  • Coinbase is winding down the majority of its operations in Japan.
  • A small number of staff is maintained to ensure the safety of clients’ assets.

Coinbase Inc. will shut down. The US cryptocurrency exchange has most of its operations in Japan. The move is said to be part of the company’s restructuring efforts as it looks to realign its overseas investments to navigate the ongoing crypto winter.

A major downsizing is planned in Japan

According to a report on January 11th bloombergOnly a few Coinbase Japan employees will be retained. Their role will primarily consist of ensuring the safety and security of clients’ assets. Nana Murugesan, Vice President, Business Development and International Affairs confirmed:

“We have decided to wind down the majority of our business in Japan, which has resulted in the cancellation of most roles in our Japanese unit.”

When asked about the possible sale of the Japanese subsidiary, Murugesan said Coinbase would not comment on potential M&A activity. He added that the stock exchange is going through a transitional period until the end of discussions with the Japanese Financial Services Agency. Nao Kitazawa The Japanese army chief is reported to be participating in these talks.

The downsizing comes at a time when the Japanese cryptocurrency market appears to be heading for looser regulations, which has attracted rival platform Binance. As early as 2021, Coinbase explored the possibility of establishing a crypto exchange in Japan in collaboration with Mitsubishi UFJ Financial Group Inc.

expansion efforts currency base

News of the termination of Japanese operations comes barely a day after Coinbase announced it would cut its global workforce by 20%. CEO Brian Armstrong deemed the layoffs of approximately 950 employees necessary in order to navigate the harsh crypto winter.

Coinbase plans to acquire 2TM Participacoes SA, a Brazilian crypto broker, collapsed last year. The acquisition was part of its global expansion plan. A potential deal to launch a cryptocurrency buying service in India was also canceled last year due to pressure from the central bank.

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