Coinbase, the largest cryptocurrency exchange in the United States, will be shutting down the majority of its operations in Japan as part of its restructuring plan to survive the bear market. This decision comes after the announcement that the company would be laying off 20% of its workforce.
Vice President of International and Business Development, Nana Murugesan, stated:
“We’ve decided to wind down the majority of our operations in Japan, which led to eliminating most of the roles in our Japan entity.”
According to Murugesan, the Japanese branch will retain a small number of employees to ensure that customer assets are protected.
Murugesan also stated that until negotiations with Japan’s Financial Services Agency are concluded, Coinbase is in a transitional phase. Nao Kitazawa, the CEO of Coinbase Japan, is participating in those discussions, and Murugesan indicated that the next moves would be determined consequently.
When asked about mergers and acquisitions, the cryptocurrency exchange declined to comment, explaining that they are exploring all of their options.
A Coinbase spokesperson stated:
“We are carefully evaluating all options and will communicate any further updates as they become available.”
Due to the unpredictability of the market, the cryptocurrency exchange had already reduced its staff by 18% in June 2022. Back then, Coinbase CEO Brian Armstrong claimed that the company’s rapid growth and high labour expenses made it difficult to navigate the confusing market environment efficiently.
Additionally, on January 10th, Armstrong made the difficult decision to let go of roughly 950 employees to cut our operating expenses by about 25% Q/Q.
Furthermore, amid pressure from the nation’s central bank, Coinbase stopped offering a cryptocurrency purchasing service in India.
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