- The American exchange Kraken announced that starting next month it will close operations in Japan due to market conditions both locally and globally.
- Kraken will suspend the crypto trading services of its Japanese subsidiary, Payward Asia, and de-register from the Japan Financial Services Agency on January 31, 2023.
- Kraken users in Japan have until the end of next month to withdraw their fiat and crypto holdings.
Life is full of ups and downs, short paths and longer ones, moments of happiness and others of sadness, however, you always have to know how to recognize when it is time to say goodbye, to let go, because as Gustavo Serati said ” to be able to say goodbye, is to grow”.
That’s what the United States-based digital asset exchange house thinks, Krakensince recently advertisement which will end one of its chapters, by closing its operations in Japan next month, pointing out the current market conditions in the country of the sun in addition to a weakened crypto market around the world.
Through a publication in his official blogKraken noted that it will suspend crypto trading services through its Japanese subsidiary, Payward Asia, in addition to deregistering from the Japan Financial Services Agency on January 31, 2023.
What can Kraken users do?
Kraken users in Japan have until the end of next month to withdraw their fiat and crypto holdings, In addition to having the possibility of transferring crypto to another wallet or, failing that, transferring Japanese yen to a local bank.
Likewise, the firm asked its users for peace of mind, since it guaranteed to have all the necessary resources so that all affected clients can withdraw their assets without any setback.
It’s important pointing that, Starting January 9, users in Japan will already have the ability to fund their account, however, the merchant functionality will continue to be in effect so that you can convert your balance into the active of your preference.
Hard blow to Kraken
This is not the firm’s first stumble so far in 2022, as the exchange’s co-founder, Jesse Powell, stepped down as CEO last September.
His position was scheduled to be taken by Dave Ripley, director of operations. In addition, last month, Kraken cut its workforce by 30 percent, representing roughly 1,100 employees, due to difficult market conditions, which are stagnant after the collapse of rival exchange FTX.
Therefore, one of the firm’s short-term objectives is to prioritize resources and investments, in order to guarantee its long-term stability.
This is the second time that Kraken has left the Japanese market. The first time was four years ago, when it was forced to shut down after initially establishing operations in 2014. It relaunched in the country in 2020 after obtaining registration from the regulator.
2022, a tough year for the crypto market
2022 has not been a kind year for the crypto industry in general, since it has had great mistakes and hard blows both for crypto asset enthusiasts and for the companies that support the digital market, which is why it has been called the “annus horribilis” of the industry.
The first hard blow came with the disappearance of Terra, the second symptom of a difficult year was the fall like dominoes of various crypto companies, among which Celsius and the hedge fund Three Arrows Capital stand out.
One of the hardest blows at the end of the year was the crisis and bankruptcy of the FTX crypto exchange. Its co-founder and former CEO, Sam Bankman-Fried, has been released on bail pending trial on fraud and other criminal charges.
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