Customers have four weeks to withdraw their assets when coinbase suspends operations in Japan

2 Mins read

Since its launch in June 2012, Coinbase has become one of the world’s leading cryptocurrency exchanges. Coinbase has been making headlines recently with its expansion into the Japanese market and its decision to terminate existing deals with current clients.

Significant details about deals with Japanese clients

The company revealed that it has already terminated contracts with some of its current clients in the East Asian nation, citing regulatory issues as their primary reason.

In addition to terminating some of its existing deals, the company also revealed that it actively sought to partner up with new businesses in Japan. The company is looking for local partners who can help them navigate the country’s complex financial regulations. The company noted that Japanese authorities have historically been cautious about cryptocurrency operations within the country. Thus a local partner would be essential for adhering to all relevant laws and regulations.

The company stated that they were working on obtaining further licences from Japanese regulators to begin trading operations without any issues or delays.

Primary reasons for deal termination

The company has cited reasons behind its decision to end these agreements. The first reason is that they still need to be ready to meet the regulatory requirements and standards set by the Japanese government. Additionally, some of these existing contracts must align with Coinbase’s goal of providing customers with improved services and features.

By terminating their existing agreements, the company hopes to pave the way for more streamlined operations in Japan. They are also looking forward to building relationships with new partners who can help them expand their presence in the Japanese market more efficiently and effectively.

Positive/Negative impact of a decision

On the one hand, this announcement will surely bring relief to some of Coinbase’s current customers who are uncertain about the future of their investments. On the other hand, this decision may have ended some users’ plans for investing through Coinbase in Japan, as they will no longer have access to services offered by the platform in that country.

The primary consequence that Coinbase customers will face due to this recent change is a need for more access to specific products and services previously offered by the company. Additionally, some users may need help withdrawing funds or assets on the platform as expected. Furthermore, users may need help to comply with regulations due to different laws and requirements between Japan-based operations and those in other countries.

In summary, Coinbase customers should know that this announcement may have several consequences, including limited access to products and services, loss or delay in withdrawal processing times, and confusion regarding regulatory compliance issues.

Criticism of Decision: Reactions

This decision has incited sharp criticism from many industry experts and has confused Coinbase’s customers.

The announcement comes after Coinbase intended to expand its presence into Japan in July 2018. Since then, it appears that the exchange has been unable to establish an adequate security framework for its operations within Japan’s stringent regulations. As such, some believe that this decision indicates underlying problems with Coinbase’s practices or lack thereof.

This perception has been exacerbated by Coinbase’s silence on why it decided to terminate these agreements and what Japanese regulations it couldn’t comply with.

About FSA’s Warning Letter

The FSA issued a warning letter to Coinbase Japan on June 25th June 2021, informing them that their activities go against Japanese money laundering regulations and other crypto exchange rules. Coinbase announced that it would terminate all deals with existing customers in Japan within a month. The decision was made as part of an effort by Coinbase to comply with local regulations and ensure a safe trading environment for its users in Japan.

Leave a Reply

Your email address will not be published. Required fields are marked *