Crypto exchange Coinbase
has announced it will cease operations in Japan, citing unstable “market conditions” in a blog post on Wednesday.
Customers in Japan will have until Feb. 16 to withdraw fiat deposits and crypto holdings. After that date, all remaining crypto holdings on the exchange in the country will be converted into yen and sent to Guaranty Account at the Legal Affairs Bureau.
“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. However, we are committed to making this transition as smooth as possible for our valued customers,” the company said.
Coinbase’s move come just a few weeks after another exchange Kraken said it would close operations in Japan this month.
Last week, Coinbase CEO Brian Armstrong said 10% of the company’s workforce would be cut “to ensure we have the appropriate operational efficiency to weather downturns in the crypto market.”
Coinbase stock has rallied 40% since the job cut announcement, but has still lost 76% in the last 12 months.
The company has divided analysts on Wall Street, in the midst of a crypto downward spiral. Bank of America last week downgraded the stock and lowered their price target, saying Coinbase’s shares might not be able to “tolerate” the volatile crypto environment. Meanwhile, Cathie Wood’s Ark Investment Management added to its large Coinbase stake.
Last week, S&P Global Ratings downgraded its long-term credit rating and senior unsecured debt rating on Coinbase, lowering its BB rating to BB-.
Coinbase stock was 1% down in premarket trading on Wednesday.