Popular cryptocurrency exchange Coinbase has announced it will be halting its operations in Japan. Investors have till 15th February to withdraw their funds from the firm.
New Situation In Coinbase Japan
This decision comes as a surprise to the community as many termed Japan as the major base for Coinbase operations.
Japan has been at the forefront of cryptocurrency adoption, with a significant number of firms and individuals operating and trading in these cryptocurrencies.
Coinbase released a report to the public expressing their regret to inform customers that they will be shutting down their operations in Japan moving forward.
They also stated they had worked closely with regulators in Japan to find a solution to the extreme market condition and regulations but couldn’t reach a compromise on these situations.
This news has been met with a lot of controversies from many in the cryptocurrency community, who view Japan as a major homebase for the growth of cryptocurrency adoption.
However, Coinbase has stated that it is committed to cooperating with regulators in other countries to make its services accessible to users all over the world.
The Coinbase team admitted that this news may be disappointing to a lot of customers and firms in partnership with them, however they are committed to making their services accessible to other parts of the world.
Significant Impact On The Japanese Market
This news is a big blow to the Japanese cryptocurrency market, as Coinbase was one of their biggest and largest crypto exchanges in the country.
The exchange’s exit will be sure to have a tremendous negative impact on the economy of crypto in the space and will limit the availability of choices Coinbase brought to the investors previously.
In the meantime, customers who had active accounts on Coinbase Japan will be given an open window till February 15th to withdraw their assets and funds.
They will however not be able to place new trades or access their accounts after this open window closes.
This news has also affected other exchanges in Japan causing a major concern, as this could translate to more stringent regulations on them.
It remains to be seen how the Japanese market will be affected by Coinbase’s decision to halt operations, but it’s very certain that the firm’s exit will have a significant impact on the industry.