Kraken leaves Japan for the second time blaming a weak crypto market

[ad_1]

The crypto exchange has announced that it will deregister from Japan’s Financial Services Agency as a crypto asset exchange operator from January 31, 2023.

Global cryptocurrency exchange Kraken has decided to withdraw its operations in Japan for the second time, citing pressure on its resources amid a “weak crypto market”.

In a December 28 blog post, Kraken said it had decided to cease operations in Japan and deregister from the Financial Services Agency by January 31, 2023, which it said was part of efforts to “prioritize resources” and investments, stating:

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 serve customers in Japan through Payward Asia,” he added.

Kraken’s Japanese exchange is operated by its subsidiary Payward Asia Inc.

The same subsidiary operated in Japan from 2014 to 2018, before withdrawing in April 2018 to better focus its resources on growth in “other geographies”.

In October 2020, the subsidiary decided to relaunch with a headquarters in Tokyo, offering spot transactions on five major assets with expansion plans. The second iteration is now complete, with Kraken committing to allow all affected customers to withdraw their funds from the exchange by January 31, 2023 at the latest.

Users can withdraw crypto holdings to an external wallet or convert the wallet to Japanese yen and then transfer it to a domestic bank account. Withdrawal limits will be removed in January and there will also be a process for users to recover their staked Ether (ETH) which will be shared shortly.

Deposits will be disabled on January 9, but trading functions will remain.

There has never been a dull moment in crypto, and this year was no different.

Kraken seems to have been focused on cost cutting in recent months.

On November 30, Kraken announced that it had made one of its “toughest decisions” to cut its global workforce by approximately 1,100 people, or the equivalent of 30% of its workforce under difficult market conditions.

The exchange said lower trading volumes and lower customer registrations contributed to Kraken’s decision to cut spending and that the changes were necessary “to sustain the business for the long term.”

In the Japanese version of the most recent announcement, Kraken added that its exit from the Japanese market will not have a significant impact on Kraken’s overall business.

[ad_2]