Coinbase to Shut Down Most of Its Operations in Japan, COIN Shoots Up

Coinbase preparing to close most of its activities in Japan as part of a global plan to cut operational costs.

CEO of Coinbase Brian Armstrong closes eyes while a samurai looks at him

The biggest U.S.-based cryptocurrency exchange, Coinbase, is winding up most of its activities in Japan. This is part of a move to cut operational costs and international investment amid the bear market that has lasted over a year.

Coinbase to Cut Operations in Japan

Nana Murugesan, Coinbase’s vice president for business development, revealed in an interview on Wednesday, January 11th, the company’s decision to wind down operations in Japan.

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Murugesan said Coinbase has “decided to wind down the majority of our operations in Japan, which led to eliminating most of the roles in our Japan entity.” However, he adds that Coinbase will retain a small staff size to ensure the safety and security of customer assets.

The move is part of a global reduction in the workforce that will see Coinbase reduce its staff size by 20%. In its second major wave of layoffs, Coinbase CEO Brian Armstrong stated that the exchange would cut 950 jobs.

Market Reaction to the Operation Cut at Coinbase

Coinbase’s decision to reduce operating costs by around 25% amid the ongoing crypto winter has been welcomed by market analysts. Barclays analysts said they were encouraged by Coinbase’s move to take financial discipline seriously.

Owen Lau, an analyst at Oppenheimer, said the cut will help Coinbase “maintain a certain loss guardrail.” The positive sentiments have seen the price of Coinbase stock, COIN, jump by 12.96% in the last 24 hours to trade as high as $43.23.

On the Flipside

  • The brother of a former Coinbase product manager has been sentenced to ten months in prison. He plead guilty to the first crypto insider trading case.

Why You Should Care

Coinbase hopes to reach an “appropriate operational efficiency.” It aims to better cope with the crypto winter by reducing global operating costs.

Find more details about the Coinbase job cut below:
Coinbase (COIN) Cuts Another 20% of Workforce amid Persistent Crypto Winter

The drop in Coinbase’s market cap is also covered in:
Dogecoin (DOGE) Dethrones Coinbase by Total Market Cap: Here’s Why

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Milko Trajcevski

Milko Trajcevski is a DailyCoin news reporter, mainly focused on Ethereum (ETH), Cardano (ADA), and their founders (Vitalik Buterin and Charles Hoskinson). Milko is an avid follower of crypto and blockchain technology and has written thousands of articles on the subjects. He finds joy in transforming complex issues into written content that anyone can understand. Milko has used and analyzed numerous exchanges, such as Coinbase, FTX, and Binance. He also closely follows all of the latest news around the largest decentralized exchanges (DEXs). Location: Skopje, Macedonia