Crypto exchange Kraken to halt operating in Japan
Kraken pointed to 'current market conditions' in Japan and 'weak crypto market globally'
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Kraken plans to stop operating in Japan at the end of January, the cryptocurrency exchange said Wednesday.
The deadline for Kraken clients in Japan to withdraw their assets has been set for Jan. 31, the date on which the exchange said it will deregister from Japan’s Financial Services Agency, according to a post on its website. Kraken is ending its operations in the country to "prioritize resources and investments in those areas that align with our strategy and will best position" the company "for long term success," it said.
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"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. "As a result, Kraken will no longer service clients in Japan through Payward Asia."
Cryptocurrency mixing platform Tornado Cash has been hit with U.S. sanctions over allegations of money laundering. (Reuters/Dado Ruvic/Illustration / Reuters)
Some popular cryptocurrencies have seen their prices drop significantly year-to-date.
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Bitcoin, for instance, has fallen over 65%, while Ethereum and Cardano are down over 68% and 80%, respectively. Solana, another cryptocurrency, has dropped over 90%.
Some popular cryptocurrencies have seen their prices drop significantly year-to-date. (Reuters/Dado Ruvic/Illustration/File / Reuters Photos)
Kraken went on to say that to help affected clients, it had done away with withdrawal limits for January. It will also maintain trading functionality in January beyond the date it stops allowing deposits on the platform to facilitate impacted clients either withdrawing their crypto to external wallets or converting their portfolio to cash for a subsequent transfer to a bank account, according to the post.
The cryptocurrency exchange said it would convert "any remaining non-JPY fiat (e.g. USD, EUR) and crypto holdings" to Japanese yen after the Jan. 31 deadline, after which point Japanese clients would "have to coordinate with the Legal Affairs Bureau on how to retrieve [their] JPY balance."
Kraken plans to stop operating in Japan at the end of January, the cryptocurrency exchange said Wednesday. (Reuters/Dado Ruvic/Illustration / Reuters Photos)
KRAKEN CUTS 1,100 WORKERS IN ‘CRYPTO WINTER’
Kraken’s decision to pull out of Japan follows its announcement last month that it would cut its headcount by 30%, equating to roughly 1,100 employees losing their jobs.
The layoffs, expected to bring the company’s workforce size back to what it was about a year ago, are part of Kraken’s efforts to weather a "crypto winter" and "adapt to current market conditions," according to a business update from CEO Jesse Powell.
Kraken is currently available in 190 countries, according to its website.