Coinbase to Scale Back Japan Operations and Layoff 950 Employees After $100 Million Settlement

Crypto exchange coinbase announced that it will scale back most of its operations in japan. a small crew will remain committed to the security of customers’ assets. talks with japan’s financial services agency (fsa) are still ongoing. coinbase was licensed to service japanese customers on june 18 of last year.

November 2022, coinbase agreed to pay a $100 million settlement with the new york department of financial services. coinbase will pay $50 million as a penalty and will invest the additional $50 million in bolstering its compliance program. coinbase also announced another massive round of layoffs, which will see 950 employees lose their jobs. this follows the previous downsize of 1,100 employees.

Global downgraded coinbase’s credit rating from “bbb” to “bb-”, pointing to “weakened” trading volumes at the exchange. the new york department of financial services found “significant failures” in coinbase’s compliance program, which must include transaction monitoring and know your customer (kyc) rules. the high-profile collapse of ftx in november 2022 increased levels of regulatory attention, and coinbase’s chief executive officer nao kitazawa is driving the talks.

By Evey Lovelace

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