Kraken, a US-based cryptocurrency exchange, announced on Wednesday, December 28 that it would shut down operations in Japan in the upcoming month, citing the country’s current market conditions as well as a flawed crypto market around the globe.
Kraken will deregister itself from JFSA (the Financial Services Agency) on January 31, at which point clients will be required to retract their fiat and cryptocurrency holdings, in accordance with a statement.
Kraken stated that it is funded entirely to make sure that almost all influenced clients can withdraw their investments as soon as possible.
Kraken announced last month that it is planning to decrease its workforce by 30 percent, or approximately 1,100 employees, due to weak market dynamics.
Bitcoin, the world’s most valuable cryptocurrency, has lost 60 percent of its value this year, while the overall crypto market has shrunk by US$1.4 trillion, crushed by the demise of Sam Bankman-FTX Fried’s aristocracy, Celsius, and alleged “stablecoins” terraUSD and Luna.
Kraken said customers should withdraw their fiat and crypto holdings before that date, with the exchange “fully funded to ensure all affected clients can withdraw their assets in a timely manner”.
“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. As a result, Kraken will no longer service clients in Japan through Payward Asia,” Kraken said.
“We value the trust our clients put in us and we will do what we can to minimize the impact of our decision on you. That’s why we are committed to ensuring a seamless transition and we hope the information in this email will help you decide what is the best option for you.”
Source: aljazeera.com
In 2022, cryptocurrency prices have dropped sharply, with the flagship resource Bitcoin having lost approximately two-thirds of its worth ever since the beginning of the year.
Kraken, itself through the branch Payward Asia, heretofore went out of business in Japan in the year 2018, citing rising business costs, before actually relaunching with a Tokyo workplace after two years.
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