Crypto Player Kraken To Leave Japan Amid Annus Horribilis Sectors | Business and economy

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The announcement from the US-based cryptocurrency exchanges comes amid plummeting asset values ​​and industry-wide calculus on FTX.

US-based cryptocurrency exchange Kraken has announced that it will exit Japan, becoming the latest player to cut operations after a horrific year for digital assets.

Kraken will cease operations in the East Asian country by deregistering from the Financial Services Agency on Jan. 31, the company said in a statement on Wednesday.

Kraken said customers should withdraw their fiat and crypto holdings before then, with the exchange being fully funded to ensure that all affected customers can withdraw their assets in a timely manner.

Current market conditions in Japan, coupled with a weak global crypto market, mean that the resources required to further develop our business in Japan are not warranted at this time. As a result, Kraken will no longer serve customers in Japan through Payward Asia, Kraken said.

We appreciate the trust our customers place in us and we will do our best to minimize the impact of our decision on you. That’s why we’re committed to ensuring a smooth transition, and we hope the information in this email helps you decide which option is best for you.

Krakens’ announcement comes days after it unveiled plans to lay off 1,100 employees, almost a third of the total workforce, as part of an industry report following FTX’s dramatic fall from grace. and its founder Sam Bankman-Fried.

The bankruptcy of FTX and the subsequent arrest of Bankman-Frieds on multiple fraud charges sent shockwaves through the industry, prompting calls for tighter regulation and predictions of long-term decline for the sector.

Crypto prices have plummeted in 2022, with flagship asset Bitcoin losing nearly two-thirds of its value since the start of the year.

Kraken, operating through its subsidiary Payward Asia, previously ceased operations in Japan in 2018, citing rising costs of doing business in the country, before relaunching with an office in Tokyo two years later.

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