Kraken closes crypto exchange in Japan due to weak global crypto-currency market

Crypto-currency exchange Kraken is closing its services in Japan. The company explained that the current market conditions in Japan and the weakness of the global crypto-currency market do not warrant the resources to continue growing its business in Japan at this time.

Kraken to leave Japan

Crypto-currency exchange Kraken announced Wednesday that it had decided to “to cease operations in Japan and deregister with the Financial Services Agency (JFSA) effective January 31, 2023.“

The company explained that the decision to leave 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 long-term success.“Ad details:

Current market conditions in Japan, combined with the weak global crypto-currency market, mean that the resources required to further expand our business in Japan are not warranted at this time.

“As a result, Kraken will no longer provide services to customers in Japan through Payward Asia“, the exchange said. Payward Asia Inc. manages Kraken’s services in Japan.

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

The crypto-currency market has suffered greatly this year, with bitcoin dropping more than 65 percent year-to-date. The collapse of the Terra ecosystem in May and the implosion of FTX last month negatively impacted many crypto companies, and a number of firms ended up having to file for bankruptcy, including FTX, Three Arrows Capital (3AC), Voyager Digital, Celsius Network and Blockfi.

“Since the beginning of the year, macroeconomic and geopolitical factors have weighed on the financial markets. This has resulted in a significant decline in trading volumes and a decrease in client registrations“, detailed Jesse Powell, Kraken’s CEO, last month. “Unfortunately, the negative influences in the 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 percent, or about 1,100 people, “to adjust to current market conditions.“