Kraken Shuts Down Japan Crypto Exchange Citing Global Crypto Market Weakness – Bitcoin Exchanges News

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Cryptocurrency exchange Kraken is closing its services in Japan. The company explained that the current Japanese market conditions and the weak global crypto market do not justify the resources needed to further expand its business in Japan at this time.

Kraken leaves Japan

Cryptocurrency exchange Kraken announced on Wednesday that it has decided to “cease operations in Japan and deregister from the Financial Services Agency (JFSA) effective January 31, 2023.”

The company explained that the decision to exit the Japanese crypto market is part of its “efforts to prioritize resources and investments” in areas that align with the company’s strategy and “will best position Kraken for a future.” long-term success”. Advertisement details:

Current market conditions in Japan, coupled with a weak crypto market globally, 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 service customers in Japan through Payward Asia,” the exchange said. Payward Asia Inc. operates Kraken’s services in Japan.

All affected customers have until January 31 to withdraw their fiat and crypto holdings, the announcement adds, noting that deposit functionality will be removed on January 9. Kraken also assured customers that it is “fully funded to ensure that all affected customers can withdraw their assets in a timely manner.

The crypto market has suffered significantly this year, with bitcoin dropping more than 65% since the start of the year. The collapse of the Terra ecosystem in May and the implosion of FTX last month had a negative impact on many crypto companies, and a number of companies ended up filing for bankruptcy, including FTX, Three Arrows Capital (3AC), Voyager Digital, Celsius Network and Blockfi. .

“Since the beginning of this year, macroeconomic and geopolitical factors have weighed on financial markets. This has resulted in significantly lower trading volumes and fewer customer sign-ups,” Kraken CEO Jesse Powell detailed last month. “Unfortunately, the negative influences in financial markets have continued and we have exhausted preferable options to align costs with demand.” Kraken announced in November that it was reducing its global workforce by 30%, or around 1,100 people “in order to adapt to current market conditions”.

What do you think of Kraken’s exit from the Japanese crypto market? Let us know in the comments section below.

Kevin Helms

An economics student from Austria, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests include Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

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