Kraken Exchange Will Leave Japan For The Second Time At The End Of Jan 2023

Key Points:

• Kraken exchange will leave Japan in early 2023.
• Customers must withdraw their fiat and crypto holdings by January 31, 2023.
• This is the second time the crypto exchange has retreated from the Japanese market since June 2018.

On December 28, Kraken exchange will leave Japan at the end of January 2023. Payward Asia, which operates in Japan, announced today that it would “stop the crypto exchange business”.

The crypto exchange’s departure from the Japanese market is due to the country’s current market conditions and the weak global crypto market.

Kraken will deregister from the Financial Services Authority (JFSA) as of January 31, when customers will have to withdraw their fiat and crypto holdings, Kraken said in a statement.

Kraken said it is fully funded to ensure that all affected customers can promptly withdraw their assets.

Last month, Kraken said it would reduce its workforce by 30%, or about 1,100 employees, as challenging market conditions have crippled demand for digital assets.

As updated in an earlier Coincu News article, the total number of layoffs in crypto companies this year also recorded the highest in recent years at 9,564, with trading platform Crypto.com accounting for the highest share at 24%. Elsewhere, Coinbase, Kraken, and Bybit each had 6% of total employees laid off.

The whole market is struggling with a bear market. The preeminent cryptocurrency, Bitcoin, has lost 60% of its value this year. While the market hasn’t recovered from Terra’s LUNA-UST crypto crash in May, the sudden and rapid collapse of Sam Bankman-Fried’s FTX empire has evaporated a total of about $1.4k billion.

Reportedly, this was Kraken’s second withdrawal from Japan since June 2018. At the time, the decision to close services in the country was based on the growing costs of doing business there. Therefore, they decided to leave to focus their resources on other geographical locations. However, Kraken completed registration under the revised “Payment Services Act” in 2020 and re-entered the market.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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