Coinbase will end most of its operations in Japan.

In accordance with a latest comment by Nana Murugesan, the firm's vice president for business development and international, the U.S.-based cryptocurrency exchange Coinbase will reduce the majority of its activities in Japan.

In a Wednesday conversation, Murugesan stated:

“Weve decided to wind down the majority of our operations in Japan, which led to eliminating most of the roles in our Japan entity.” Considering the Japanese entity's merger and acquisition operations, he chose not to remark.

Murugesan did not disclose how several Japanese workers are impacted by the news, but he did indicate that a limited group will continue to be dedicated to ensuring the safety of clients' assets.

The Nasdaq-listed Coinbase exchange was authorized to serve Japanese consumers on June 18 last year, following filing with the country's Financial Services Agency (FSA), the country's top financial watchdog.

Murugesan highlighted that Coinbase Japan is in a transformation process till negotiations with Japan's FSA are completed. Nao Kitazawa, the entity's chief executive officer, is pushing the discussions and will make his announcement “afterward.”

A busy 2023 for Coinbase

Just two weeks into the New Year, and Coinbase is already hardly ever out of the news. The New York Department of Financial Services and the corporation reached an agreement last month for $100 million involving problems with the company's compliance efforts.

The department asserts that its investigation uncovered “serious flaws” in Coinbase's compliance procedures that contravene the New York Banking Law and state laws governing virtual currencies, money transmission, transaction monitoring, and security.

As a result, Coinbase will spend $50 million as a fine and will spend the extra $50 million in improving its regulatory guidelines to have included transaction monitoring and know your customer (KYC) standards.

This week on Tuesday, Coinbase disclosed another significant round of layoffs that will result in the loss of 950 jobs. This happened seven months after 1,100 employees—or nearly 18% of the workforce—were let go as a result of a prior round of cutbacks.

Following the well-publicized failure of FTX in November 2022, S&P noted “weakened” trade volumes at the exchange and greater levels of supervisory monitoring.

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