Kraken Leaves Japan for Second Time Citing Weak Crypto Market

https://www.cryptoknowmics.com/news/kraken-leaves-japan-for-second-time-citing-weak-crypto-market

In response to a poor cryptocurrency market, the largest cryptocurrency exchange in the world, Kraken, has chosen to cease operations in Japan for a second time.

Kraken Leaves Japan for the Second Time

In a blog post published on December 28, Kraken stated that as part of efforts to "prioritize resources" and investments, the company has chosen to stop operating in Japan and deactivate with the Financial Services Agency by January 31, 2023.

It further stated that the resources required to expand the company in Japan at this moment aren't warranted due to the poor cryptocurrency market internationally and the current marketplace conditions in Japan. Kraken would no longer provide clients in Japan with services through Payward Asia.

Payward Asia Expansion in Other Locations

The exchange that Kraken offers to Japanese users is run by its affiliate Payward Asia Inc. From 2014 to 2018, the same subsidiary firm operated in Japan before leaving in April 2018 to better concentrate its energies on expansion in "other geographical locations."

The subsidiary decided to relaunch in October 2020 with a Tokyo headquarters, enabling instant trading on five significant assets with future expansion ambitions. The second round of negotiations is now over. Kraken has agreed to let all impacted customers withdraw their money from the exchange by January 31, 2023.

Transfer of Crypto Holding to External Wallet

Users can move their cryptocurrency holdings to an external wallet or a local bank account by first converting their portfolio to Japanese Yen. In addition to removing withdrawal restrictions in January, a mechanism will soon be disclosed. It will enable users to reclaim their staked Ether (ETH). On January 9, deposits will no longer be possible, although trading will still be possible.

Recently, it seems that Kraken has been concentrating on cost-cutting. In light of the challenging market conditions, Kraken said on November 30 that it has taken one of its toughest decisions to reduce its worldwide staff by about 1,100 individuals, or 30% of its personnel.