Coinbase to close the bulk of operations in Japan

Cryptocurrency exchange in the United States currency base It will scale back most of its operations in Japan, according to a recent statement by the company’s vice president of business development and international affairs, Nana Murugesan.

“We have decided to terminate the majority of our business in Japan, which has resulted in the cancellation of most roles in our Japanese unit,” Murugesan said in an interview on Wednesday. He declined to comment on mergers and acquisitions by the Japanese unit.

While Murugesan did not provide details on how many Japanese employees were affected by the announcement, he said that a small staff will remain committed to the security of clients’ assets.

The Nasdaq-listed Coinbase platform is licensed to serve Japanese clients at June 18th Last year, after registering with the country’s Financial Services Agency (FSA), the country’s main financial regulator.

Murugesan confirmed that Coinbase Japan is in a transitional phase until talks with the Japanese FSA are finalized. The entity’s CEO, Nao Kitazawa, is leading the talks and will announce his next move “after that.”

Coinbase busy 2023

It’s barely two weeks into the new year and Coinbase is rarely out of the spotlight. Last month, the company agreed to pay one $100 million settlement With the New York Department of Financial Services on matters related to the company’s compliance program.

The department claims to have foundBig failureIn Coinbase’s compliance program violating New York banking law and state regulations related to virtual currencies, money transfers, transaction monitoring, and cybersecurity.

As a result, Coinbase will pay $50 million in penalties and invest an additional $50 million in strengthening its compliance program to include transaction monitoring and Know Your Customer (KYC) rules.

On Tuesday of this week, Coinbase announced another huge round of layoffs, which it will see 950 employees They lose their jobs in downsizing. This comes seven months after imposing an earlier round of cuts 1100 employees—about 18% of the workforce at the time.

Then on Wednesday, S&P Global downgraded Coinbase’s credit rating from “BBB” to “BB-,” moving it from “investment grade” to “speculative grade.”

S&P noted the exchange’s “weakening” trading volumes and increased levels of regulatory interest thereafter A high-profile breakdown of FTX in November 2022.

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