Coinbase Global (NASDAQ:COIN) is considering pulling out of Japan as part of its response to the sharp drop in cryptocurrency trading following the FTX crash.
Coinbase Global Inc is also trading on B3 through the ticker (BOV: C2OI34).
The US-listed cryptocurrency exchange has been operating in Japan since 2021 in partnership with Mitsubishi UFJ Financial Group, which invested more than 1 billion yen ($7.74 million at current rates) in Coinbase in 2016.
Coinbase is considering several options regarding its Japanese unit, including selling the company or giving up its registry license.
Coinbase said Tuesday that it will cut about 950, or 20%, of its employees globally by the end of June, in its third round of layoffs since last summer.
The global cryptocurrency market cap fell nearly 20% after the FTX exchange filed for bankruptcy protection in November. With regulatory costs also expected to rise, Coinbase is re-examining its operation in Japan.
Coinbase CEO Brian Armstrong said in a blog post on Tuesday that the cryptocurrency market has “seen fallout from unscrupulous players in the industry, and there may be more infections yet.” Previously, the company announced plans in June 2022 to lay off 1,100 people, and then laid off dozens, including many executives, in November.
Payward Group, the US operator of cryptocurrency exchange Kraken, is winding down its Japanese operations at the end of the month. Payward affected affected customers to transfer their remaining crypto assets to external digital wallets and re-deposit yen into personal bank accounts. If Coinbase cancels the registration, the company is expected to take similar action.
With information from the Nikkei Asia Index