The crypto exchange said it will deregister from Japan’s Financial Services Agency as a crypto asset exchange operator from Jan. 31.
Global cryptocurrency exchange Kraken has decided to shut down operations in Japan for the second time, citing a strain on its resources amid a “weak crypto market.”
In a Dec. 28 blog post, Kraken said it has decided to cease operations in Japan and leave the financial services agency by Jan. 31, 2023, as part of an effort to prioritize resources and investments. :
“The current market conditions in Japan, combined with weak global crypto markets, mean that the resources needed to continue doing business in Japan are not currently justified.”
“As a result, Kraken will no longer serve customers in Japan through Payward Asia,” it added.
Kraken’s Japan-facing exchange is managed by its subsidiary Payward Asia Inc. The same subsidiary operated in Japan from 201
to 2018 before closing in April 2018 to better focus its resources on growth in “other geographies”.
In October 2020, the subsidiary decided to start its operations and is headquartered in Tokyo, offering spot trading in five major assets that are planning to expand. The second iteration has now ended, and Kraken is allowing all affected customers to withdraw their funds from the exchange by January 31st.
Users can withdraw crypto holdings to an external wallet or convert their portfolio to Japanese yen and then transfer it to a domestic bank account. Withdrawal limits will be removed in January and users will be able to withdraw their bets. In January, deposits will be removed although commercial features remain.
Kraken seems to be focused on cost reduction in recent months.
On November 30, Kraken announced that it had made one of its “difficult decisions” to cut its global workforce by about 1,100 people, or 30 percent, amid difficult market conditions.
The exchange said that lower trading volumes and fewer client registrations contributed to Kraken’s decision to reduce costs and that the changes were necessary “to maintain the business in the long term.”
In the Japanese version of the latest version, Kraken added that its exit from the Japanese market will not significantly affect Kraken’s overall business.
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