• Coinbase is closing down the majority of its operations in Japan as part of a global restructuring effort.
• This follows the news that the company would reduce its workforce by 20%.
• The remaining employees in the Japanese branch will be responsible for ensuring customer assets are secure.
After months of a bear market that has seen cryptocurrency prices plunge, Coinbase is taking steps to survive. The global cryptocurrency exchange announced that it will be closing down a majority of its operations in Japan in order to restructure.
Nana Murugesan, Vice President of International and Business Development, spoke to BNN Bloomberg about the decision. Murugesan said that the company had decided to “wind down” the majority of its Japan operations, resulting in the elimination of most of the roles in the Japan entity.
The move is part of Coinbase’s restructuring plan and follows the news that the company would be reducing its workforce by 20%. Although Murugesan did not provide specifics, he did note that a small number of employees would remain in the Japanese branch in order to ensure customer assets are secure.
The news comes as cryptocurrency prices continue to remain at historic lows and exchanges struggle to remain afloat. Coinbase is one of the biggest cryptocurrency exchanges in the world and its decision to close down a large portion of its operations in Japan could have a significant impact on the country’s crypto sector.
The move also comes at a time when Japanese regulators are clamping down on exchanges in the country. In March, the Japanese Financial Services Agency (FSA) issued a warning to five exchanges, including Coinbase, to improve their anti-money laundering and customer protection measures.
Coinbase’s decision to close down a majority of its operations in Japan could be seen as a sign that the company is trying to preserve costs and make sure it survives the bear market. It remains to be seen how the Japanese crypto sector will be impacted by the move, and the long-term implications for the exchange.