Coinbase, one of the leading cryptocurrency exchanges, announced that it is halting its operations in Japan due to “market conditions.”
The exchange has given its customers until February 16 to withdraw their fiat and crypto holdings. More importantly, all deposits will be halted on January 20.
Coinbase Hit Hard by Crypto Winter
Coinbase’s decision to halt operation in Japan was made after the crypto exchange completed its registration with the nation’s Financial Services Agency (FSA) in June 2021. The firm also follows in the footsteps of its peer Kraken, which ended its operations in Japan at the end of last year.
The cryptocurrency market has been hit hard by the crypto winter, and companies have been forced to adapt to the difficult conditions. Coinbase has been no exception, recently cutting around 20% of its workforce, or 950 people, as part of its restructuring efforts. There were several reports that Coinbase was closing its Japanese operations after the workforce reduction.
Many exchanges may look to withdraw or downscale operations in certain markets, as Coinbase and Kraken have done in Japan.
COIN stock is currently down 1.61% at $53.93 in pre-market trading, amidst a rally for the exchange which has seen its stock price increase some 56% since the start of the year.
From a technical perspective, COIN appears to be breaking out of a falling wedge on its four-hour chart. A sustained close above the $58 resistance level could trigger a 80% upward move towards $90.
Still, failing to overcome this important supply wall could instead trigger a spike in profit taking that leads to a downswing to the wedge’s lower boundary at around $30.
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