Leading crypto exchange, Coinbase, officially announced plans to suspend its operations in Japan.
The platform urges its Japanese users to withdraw their holdings before February 16.
Also, the platform has earlier announced plans to reduce its global workforce by 20%.
Experts believe that the collapse of the leading crypto ecosystems had led the crypto platforms to the edge of facing a liquidity crisis.
According to an official blog post dated January 18, the platform announced the suspension of its operations with current customers. The platform also announced plans to completely review its operations in Japan.
The platform noted that extreme market conditions lead the company to face a liquidity crisis, which resulted in massive layoffs and operation suspension. However, the company noted that “it is committed to making this transition as smooth as possible for its loyal customers.”
Furthermore, Coinbase has set up an efficient system to allow users to withdraw their funds until February 16. After that, Coinbase users' crypto assets will be converted to Japanese Yen and placed in a Guaranty Account at the Legal Affairs Bureau.
Customers can also transfer their cryptocurrency holdings to Coinbase Wallet, other self-hosted wallets, or cryptocurrency exchanges. The platform asserted that customers can liquidate their holdings and transfer funds to a local bank account as well.
As CoinGabbar earlier reported, the platform still experiencing the heat of global crypto winter. As a result, the platform has earlier announced plans to reduce its global workforce by 20%.
However, Coinbase is not alone in the race of suspending regular operations. Last year, California-based crypto exchange Bitfront announced the complete shutdown of its operations.
Experts believe that the collapse of the leading crypto ecosystems had led the crypto platforms to the edge of facing a liquidity crisis. But the current market rally has shown some sign of relief in the crypto community.
What are your thoughts on Coinbase's move to cease operations in Japan? Please share your valuable thoughts in the comment section below.
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