Earlier, the exchange reported plans to reduce its workforce by 20%.

Other major platforms issued similar statements.

Coinbase Global Inc, one of the biggest and publicly-listed (NASDAQ:COIN) cryptocurrency exchanges, announced on Wednesday it is halting its operations in Japan due to the severe market slump and heightened volatility observed during previous months.

Harsh Conditions Force Coinbase to Make Tough Decisions

According to Coinbase’s blog post, all customers from Japan must withdraw their crypto and fiat holdings before 16 February 2023. Any cryptocurrencies that remain in accounts after that date will be converted to Japanese yen and sent to the Guaranty Account at the Legal Affairs Bureau under local regulations. Users will then have to apply for recovery of their funds at the Bureau.

“Due to market conditions, our company has made the difficult decision to halt operations in Japan and to conduct a complete review of our business in the country. However, we are committed to making this transition as smooth as possible for our valued customers,” Coinbase wrote in a blog post published on Wednesday.

The exchange assures that it has segregated its customers’ assets in cryptocurrencies and Japanese yen and that everyone can withdraw them without any major delays. Coinbase recommends funds be transferred to another exchange, Coinbase Wallet or a self-custody wallet. The platform will stop accepting deposits as of 20 January 2023.