Cryptocurrency exchange Kraken announced its decision to withdraw operations in Japan on Wednesday, citing current market conditions. Its local subsidiary Payward Asia will deregister from the Financial Services Agency by 31 January 2023.
“As a result of considering the current situation surrounding the Japanese market and the sluggish global cryptocurrency market, we came to the conclusion that it would be difficult for Kraken to invest the necessary resources to further grow its business in Japan,” an official blog post of Kraken stated (translated from Japanese).
The crypto exchange will suspend deposits for its Japanese clients from 9 January and urged them to withdraw funds by 31 January. They can either transfer the crypto holdings to a third-party wallet or convert them to Japanese yen for withdrawing them to a bank account. It also assured having the necessary funds to handle the withdrawal requests of all of its Japanese clients in a timely manner.
There has never been a dull moment in crypto, and this year was no different.
For a recap, check out Kraken’s 2022 Year in Review: https://t.co/dXF64amFpM pic.twitter.com/kIkeKarmMQ
— Kraken Exchange (@krakenfx) December 27, 2022
The Second Exit of Kraken from Japan
It is the second time Kraken is pulling out of the Japanese market. It initially launched services in the country through the same subsidiary, Payward Asia, in 2014 until it terminated operations in 2018 to better focus its resources in “other geographical areas.”
Payward Asia relaunched the service again in 2020 for Japanese residents from its Tokyo-based headquarters, offering spot crypto exchange services.
“The decision to suspend operations in Japan will not have a material impact on Kraken’s overall business,” Kraken added.
Check out the recent London Summit session on “To Crypto or Not to Crypto: Will Crypto Fizzle Out or Here to Stay?”
Kraken is one of the oldest cryptocurrency exchanges. Its long-running CEO, Jesse Powell, who founded the exchange, stepped down from the apex post earlier this year, handing the charges to Dave Ripley.
The impact of ongoing crypto market conditions also impacted Kraken, as the exchange recently reduced 30 percent of its workforce.
Meanwhile, Kraken also settled with the US Treasury Department last month, paying a…
