KEY POINTS
- Kraken announced last month that it was reducing its global workforce by 30%
- The exchange said the move was necessary for it to be able to ‘adapt to current market conditions’
- Payward Asia Inc, Kraken’s Japanese subsidiary, was also closed down in April 2018
Global cryptocurrency exchange platform Kraken has announced that it is pulling the plug on its operations in Japan, citing a “weak crypto market.”
“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 released Wednesday, noting, “the decision is part of Kraken’s efforts to prioritize resources and investments in those areas that align with our strategy and will best position Kraken for long term success.”
As part of its decision to cease operations in the country, Kraken will deregister from Financial Services Agency (FSA) on Jan. 31, 2023. By that time, its clients would have withdrawn their fiat and crypto holdings from the exchange.
Kraken also notified its clients that it will stop the deposit functionality of the exchange on Jan. 9 and will remove withdrawal limits starting January to make sure customers can remove their holdings from the exchange.
In the post, Kraken said the exchange will retain trading functionality so customers can “convert your balance to the asset of your choice,” and funds that are staked “can be unstaked and transferred or converted as desired.”
The exchange also assured its customers that it “is fully funded to ensure all affected clients can withdraw their assets in a timely manner” and noted that it “will do what we can to minimize the impact of our decision for you. That’s why we are committed to ensure a seamless transition and we hope the information in this email will help you decide what is the best option for you.”
The announcement came after Kraken said last month it would cut 30% of its global workforce, or around 1,100 employees, due to market conditions that dampen the demand for crypto assets.
The exchange said the move was necessary for it to be able to “adapt to current market conditions,” adding that “since the start of this year, macroeconomic and geopolitical factors have weighed on financial markets.”
It is worth noting that this is not the first time Kraken ceased operations in Japan. Payward Asia Inc, its Japanese subsidiary, was closed down in April 2018 after the company operated from 2014 to 2018 so Kraken could focus its resources on growth in its “other geographical areas.”
The company reopened in October 2020 and set up a headquarters in Tokyo, offering spot trading on spot trading on five major assets.
