U.S.-based cryptocurrency exchange Kraken announced on Wednesday that it will “cease its operations” in Japan and deregister from the Financial Services Agency by the end of January 2023. Kraken will no longer serve clients through its local subsidiary, Payward Asia.
See related article: FTX debacle has crypto industry pointing finger at regulators in call for clear rules of the road
- “Current market conditions in Japan in combination with a weak crypto market globally mean the resources needed to further grow our business in Japan aren’t justified at this time,” Kraken said in a blog post on Wednesday.
- Kraken said clients must withdraw their assets from the platform by Jan. 31.
- The exchange will halt deposit functions for clients on Jan. 9, and has removed withdrawal limits for January, the blog post said.
- Earlier this month Kraken cut 30% of its global workforce, or approximately 1,100 people.
- Kraken’s Japan withdrawal comes amid the collapse of Bahamas-based crypto exchange FTX.com, which has damaged the reputation of centralized exchanges.
- See related article: Crypto market implosions, bankruptcies bring sweeping job losses … and opportunity