Crypto exchange Coinbase is looking at the possibility of withdrawing from the Japanese market. It has been driven by the steep decrease in cryptocurrency trading after the collapse of FTX.
Coinbase began doing business in Japan in 2021 through collaboration with the Mitsubishi UFJ Financial Group, which invested $7.74 million in the crypto exchange in 2016. It is looking at various options with respect to the company’s Japanese operation, including the possibility of selling the firm or giving up its registration license. Coinbase, in its third wave of layoffs on January 10, said it would be reducing its worldwide workforce – let go of 20% of employees by the end of June.
Brian Armstrong, Coinbase CEO, said the crypto market saw the fallout from unscrupulous actors in the industry. He believes there could be further contagion. The crypto exchange had revealed plans, in June 2022, to let go of 1,100 employees. In November, it cut off dozens of employees, including executives.
With the ongoing slump, Coinbase is relooking at its business in Japan.