In reaction to the substantial fall in cryptocurrency trading that has occurred with the demise of FTX, Coinbase Global is taking a close look at exiting the Japanese market.
In collaboration with Mitsubishi UFJ Financial Group, which gave Coinbase over CNY 1 billion yen (USD 7.74 million) in 2016, the U.S.-listed cryptocurrency exchange has been operating in Japan since 2021.
Regarding its Japanese division, Coinbase is considering a variety of options, including selling the organization or giving up its register license.
By the end of June, Coinbase will lay off about 950 employees worldwide, or 20% of its workforce, the business announced on Tuesday. This is the third round of layoffs since last summer.
According to price-tracking website CoinMarketCap, the market capitalization of all cryptocurrencies decreased by about 20% when major exchange FTX sought bankruptcy proceedings in November. Coinbase is reevaluating its Japan business because regulatory expenses are anticipated to increase as well.
According to Coinbase CEO Brian Armstrong in a blog post published on Tuesday, the cryptocurrency market “saw the aftermath from dishonest actors in the industry, and there could potentially be further contagion.” Previously, the business revealed plans to fire 1,100 employees in June 2022, and in November it fired dozens of workers, including key executives.
About Coinbase
In 2012, Coinbase was established as a platform for sending and receiving bitcoin. The business now employs more than 4,700 people worldwide and supports dozens of distinctive coins. With no main office, Coinbase is a decentralized business.
More than 100 nations have users on Coinbase, and each quarter, consumers trade about $159 billion worth of goods. 13,000 financial firms are supported by the extensive crypto world that Coinbase oversees.
In addition to providing a stand-alone cryptocurrency wallet service, Coinbase operates two different trading platforms. You may probably find everything you need to build and operate a bitcoin account or trading plan among the variety of goods offered by Coinbase.
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