By George Ward
Coinbase has announced that its employees will be halting its Japan-based undertakings in the next few weeks. Coinbase is also reviewing its transactions in the nation due to the unstable and bearish nature of the crypto market.
According to its official Twitter handle, the San Francisco-based company has announced that its team will temporarily halt its Japan-based undertakings in the coming weeks. This decision was made as a result of the bearish nature of the crypto market.
The company added that its team would thoroughly review its transactions in the Asian nation. Despite this decision, Coinbase is committed to ensuring a smooth transition for its valued customers in Japan.
Coinbase Will Discontinue Receiving Yen On Its Exchange
As of January 20, Coinbase will cease accepting Yen on its exchange. Customers will have until February 16 to withdraw all their crypto assets on the platform.
After February 16, any digital asset left behind on the exchange shall be changed to the local currency in Japan and transferred to Japan’s agency in charge of such issues. Also, customers will be solely responsible for retrieving the funds from their accounts.
The move follows Coinbase’s recent announcement to trim down its Japan-based workforce. Coinbase started operations in Japan in June 2021 after obtaining a work permit from the country’s Financial Services Agency.
Coinbase’s decision to stop its activities follows a similar announcement by fellow US-based exchange, Kraken. Kraken also cited current market conditions for ending its operations in Japan by the end of this month.
In contrast, Binance, the world’s largest crypto trading platform, is taking steps to re-enter the Japanese market. Binance had previously exited Japan’s crypto space in 2018.
In September, the company applied for a license to operate in Japan and later, in November, acquired a Japanese local exchange company – Sakura. Meanwhile, Japanese Prime Minister Fumio Kishida has been perceived as supportive of the crypto industry.
His economic vision, referred to as “new capitalism,” includes support for Web3 companies and investment in digital transformation as part of a strategy to revitalize the Japanese economy.
Coinbase May Face A Class Action Lawsuit
In the meantime, the distribution of FLR tokens in the Flare Airdrop event did not meet the expectations of XRP holders, resulting in disappointment and a class action lawsuit filed against the US-based crypto exchange.
The suit, filed by Plaintiff Dallas Woody in the United States District Court, accuses Coinbase of failing to provide customers with Songbird and Flare tokens as the firm had publicly agreed to do for XRP holders.
The complaint filed individually and on behalf of others names Coinbase’s CEO Brian Armstrong as a defendant. It states that the objections are based on personal knowledge.
The plaintiff believes that evidence will later be discovered to support the allegations made against Coinbase. It is noteworthy that before this, the CTO of Ripple had criticized the airdrop process of the Flare Network.