Crypto exchange Kraken to shutter its Japan processes after international releases

January 02, 2023: -Digital currency exchange Kraken will shut down its processes in Japan in the subsequent month, another sign of consolidation in the divided crypto business.

On Wednesday, Kraken stated in a blog post it would cease crypto trading services from its Japanese subsidiary and deregister from the Financial Services Agency of Japan on January 31, 2023.

It is the second time Kraken is leaving the Japanese market. The first was in the year 2018, when it was shut down four years after establishing operations in 2014. It relaunched in the country in 2020 following securing registration from the regulator.

Kraken stated the move was “part of Kraken’s efforts giving priority resources and investments in the areas that align with our plan and will be the best position Kraken for long-term success.”

It then cited a combination of “the present market state in Japan” and a “weak crypto market internationally” as the reasons behind its decision.

The company said that Japanese customers would have from January 31 to withdraw their fiat and crypto holdings from the Kraken platform. They can start their crypto in an external wallet and transfer Japanese yen to a domestic bank statement.

From January 9, users in Japan will not be able to deposit money into their accounts. However, trading functionality will remain in place so they can change their balance to the things they choose.

Kraken is one of the significant crypto exchanges in the world, processing $408.9 million of trading volumes per day, according to CoinMarketCap data.

It has been deep in cost-cutting mode along with numerous other major industry players. On November 30, the firm slashed 1,100 jobs or 30% of its workforce, which it said was needed to “adapt to current market conditions.”

Crypto has been affected by all manner of scandals, which have been termed the industry’s “annus horribilis.”

The began with the death of Terra, a once $60 billion stablecoin operator, and after the toppling of several different dominos with exposure to the project, which includes the crypto lender Celsius and border fund Three Arrows Capital.

Crypto transfer FTX’s slide into bankruptcy is a notable industry failure. Its contentious co-founder and former CEO, Sam Bankman-Fried, has been released on bail, waiting for trial for fraud and other criminal accusations.

The prices of bitcoin and different digital currencies have slid as investors increase on the market, and climbing interest rates have put downward pressure on speculative assets such as tech stocks. Bitcoin, the world’s giant token, is down over 60% this year.