• Kraken has announced that it will deregister from the Financial Services Agency of Japan and will cease operating in Japan as of January 31.
• Users in Japan have until the end of the month to withdraw their holdings, either transferring crypto to another wallet or wiring Japanese yen to a local bank.
• The decision to leave Japan is part of a larger effort to prioritize resources and investments to ensure the long-term stability of the exchange.
Kraken, a popular cryptocurrency exchange, has announced that it will be exiting Japan and deregistering from the Financial Services Agency (FSA) as of January 31. The decision comes amid “current market conditions in Japan in combination with a weak crypto market globally”, according to a blog post released by the company.
The exchange, which has been in operation since 2011, is one of the largest and oldest in the industry. It was co-founded by Jesse Powell, who departed from his role as CEO in September 2020 and was to be replaced by Chief Operating Officer Dave Ripley. However, in November 2020, the company faced a major setback when it was forced to cut 30% of its global workforce due to the crypto market’s stagnation following the collapse of rival exchange FTX.
In light of the current market conditions, Kraken has decided to prioritize resources and investments to ensure the long-term stability of the exchange. As a result, the company will be ceasing its operations in Japan and deregistering from the FSA. All users in Japan are being advised to withdraw their holdings by the end of the month, either transferring crypto to another wallet or wiring Japanese yen to a local bank.
Kraken is not the first exchange to make the difficult decision of leaving Japan. Earlier this month, Binance also announced its departure from the country, citing a “challenging business environment”. The move prompted the FSA to issue a warning to companies considering leaving the country, stressing the importance of ensuring that users are able to withdraw their funds.
The move by Kraken is indicative of the difficult market conditions in Japan, as well as the wider crypto market. Despite the current challenges, the exchange is committed to ensuring the long-term stability of its platform and its users.