Coinbase Follows Kraken to Japan Exit

“Due to market conditions, our company has made the difficult decision to halt operations in Japan and to conduct a complete review of our business in the country,” the exchange said


Blockworks exclusive art by Axel Rangel


Cryptocurrency exchange Coinbase is winding down its business in Japan after laying off more than 950 people in its most recent round of job cuts

The exchange said in a Wednesday blog that it will terminate transactions with current customers, who have until Feb. 16 to withdraw their assets.

“All Coinbase, Inc. customers can withdraw fiat currency and cryptocurrency holdings from Coinbase by February 16th,” the company said.

Customers can either choose to liquidate their holdings or withdraw Japanese Yen to their local bank account. They won’t be able to make fiat currency deposits after Jan. 20. 

After the deadline, any remaining cryptoassets will automatically be converted into the local currency, and these will be deposited with the Legal Affairs Bureau in line with the law.

Industry rival Kraken also announced at the end of December that it would pull out of Japan by the end of January, saying the resources needed to grow its business there weren’t justified at the time.

Coinbase laid off more than 2,000 people in the last year as exchanges navigated turbulent markets and lower revenues from an intensifying crypto winter, that has left its stock price vulnerable to periods of significant volatility. 

Rating agency S&P Global recently downgraded Coinbase’s long-term issuer credit rating, citing slow crypto trading volumes and rising regulatory risks. However, BTIG analysts said in a Jan. 16 note that certain factors could boost the company and its stock in 2023.

Coinbase has the advantage of market share as a result of FTX’s collapse, BTIG said. In fact, the exchange’s market share is said to have increased from 29% in October to 39% in December.

“Our bullish thesis for [Coinbase] shares at this point is anchored by two beliefs: that the company’s liquidity should provide it with the runway it will need to support its operations until the next digital asset bull market begins, and that its status as a safe haven will enable it to emerge from the ongoing shakeout within the crypto exchange space in a position of strength,” BTIG analysts Mark Palmer, Andrew Harte, Thomas Smith wrote.

Coinbase shares are down 76% in the last 12 months, but are up 43% in the last week alone, according to data from TradingView.

Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.


Upcoming Events

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Screenshot 2024-05-23 091855.png


Bitcoin L2s aim to boost scalability while preserving decentralization and security, unlocking a better user experience, and new avenues for Bitcoin-powered innovations. However, no existing Bitcoin L2 leverages the full security of Bitcoin.



The convergence of AI and blockchain on Polkadot represents a groundbreaking opportunity for investors and developers alike


The company is making public a previously private offer rejected by Bitfarms’ board of directors last month


Semler Scientific, a publicly traded medical tech company, joined MicroStrategy by buying up millions of bitcoin


As someone who’s been knee-deep in the trenches of blockchain development, I can’t help but wonder if these behemoths are really cutting it anymore


UNI and MKR are suffering from the successes of their respective protocols


Maybe there’s no silver bullet to avoiding most tokens dumping after launch…