• Coinbase is closing down most of its operations in Japan after announcing a round of job cuts globally.
• The crypto exchange teamed up with Mitsubishi UFJ Financial Group Inc. to launch a crypto exchange in Japan in 2021 and is finalizing its discussions with Japan’s top financial regulator, the Financial Services Agency (FSA).
• Coinbase has been cutting its workforce globally and CEO Brian Armstrong announced the company’s latest round of job cuts Tuesday, letting go of about 950 people.
Coinbase, a Nasdaq-listed cryptocurrency exchange, is closing down most of its operations in Japan after announcing another round of job cuts globally. CEO Brian Armstrong announced the company’s latest round of job cuts Tuesday, letting go of about 950 people. This move, he said, is necessary to weather the industry downturn.
Coinbase had teamed up with Mitsubishi UFJ Financial Group Inc. to launch a crypto exchange in Japan in 2021. However, Nana Murugesan, vice president for business development and international, revealed in an interview with Bloomberg Wednesday that the company has decided to wind down the majority of its operations in Japan, leading to eliminating most of the roles in their Japan entity. Murugesan noted that a small number of employees in Japan will remain to ensure the safety and security of customer assets.
Coinbase has been cutting its workforce globally in order to ensure the company stays “healthy during this economic downturn”. This includes a decision to reduce the size of its team by about 18%, or about 1,200 employees, back in June 2020.
Despite the job cuts, Coinbase CEO Brian Armstrong remains optimistic about the future of the company and the industry. He said, “Despite everything we’ve been through as a company and an industry, I’m still optimistic about our future and the future of crypto.” He also noted that the company is finalizing its discussions with Japan’s top financial regulator, the Financial Services Agency (FSA).
The winding down of Coinbase operations in Japan marks an important transition for the company, as well as the industry. It remains to be seen if the company will be able to weather the current economic downturn and emerge stronger in the long run.