Coinbase to end most of Japan operations: report

Virtual currency business in Japan

Major US-based crypto asset (virtual currency) exchange Coinbase plans to end most of its Japanese operations.

The content was reported on the 11th by Bloomberg, which interviewed Nana Murugesan, executive of the company’s business development and international division. The reason for the end of the business is said to be to review international investment due to the recession in the digital asset area.

Murugesan declined to comment on mergers or acquisitions of the Japanese business. He did not specify how many Japanese employees the restructuring will affect, saying only a small number will remain to ensure the safety of client assets.

Regarding the future, he said that he is currently in discussions with the Japanese Financial Services Agency and is considering the next step.

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Headcount reductions across Coinbase

Coinbase CEO Brian Armstrong made public the information he communicated to his employees on the 10th. At the outset, it explains that 2022 saw a slump in the cryptocurrency market due to widespread macroeconomic conditions.

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He also pointed out that 2022 is also the year that dishonest companies and people disappeared from the industry. He added that this impact could continue.

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On the other hand, Coinbase explained that there is enough money and the cryptocurrency itself is not going away. He said recent developments, such as fewer major competitors and more regulation, could benefit Coinbase in the long run.

However, he said it will take time to reap the benefits of the tailwind. For this reason, the company explained that operating costs, excluding some restructuring costs, will be reduced by 25% compared to the 4Q of 2020 (October to December). As part of this, the company has revealed a policy to newly reduce about 950 people, which is equivalent to 20% of the entire coinbase.

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“Projects with a relatively low chance of success will be terminated,” Mr. Armstrong said of the job cuts.

Murugesan said that the company’s policy of expanding its business globally remains unchanged.

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