Prominent cryptocurrency exchange Kraken announced it will shut down operations for Japanese customers and end the crypto asset exchange business registered by the Financial Services Agency (FSA) on January 31, 2023.
Kraken Quits Japan for the Second Time
Worth noting is that this will be the second time Kraken will be quitting the Japanese market. The crypto exchange previously left Japan in 2018 due to the rising cost of business activities in the region. Kraken re-entered Japan two years ago.
The San Francisco-based company said the decision to leave the market again was part of its “global strategy to prioritize investing resources where they are best suited for Kraken’s long-term success.”
Kraken added that the current market conditions in the Japanese market and the “sluggish global cryptocurrency market,” have made it difficult for it to grow its crypto exchange business in the country.
Recently, Kraken downsized its workforce by 30% or approximately 1,100 employees, in response to the crypto market conditions.
Kraken said its decision to quit Japan will not have a “material impact” on its overall business.
Kraken Directs Customers to Withdraw Assets Before January 31
As part of the new development, Kraken has directed its Japanese users to withdraw fiat currency and crypto assets held in their accounts before January 31, 2023.
The exchange added that withdrawal limits would be lifted for all clients’ accounts in January to enable them to move their assets to external wallets, liquidate their portfolios and withdraw funds to a domestic bank account.
Furthermore, digital assets currently staked through Kraken can be transferred to other platforms or “traded as desired.” All new deposits will be suspended on January 9, according to Kraken.
Meanwhile, the latest decision comes just a month after Kraken’s rival Binance re-entered the Japanese market after previously leaving in 2018 due to regulatory hurdles.
Japan has been known for its strict stance on crypto over the years. However, in recent times, the East Asian nation has been making moves to relax certain crypto rules to drive technical growth in the country.
