Kraken is one in every of the world’s largest cryptocurrency exchanges.
Tiffany Hagler-Geard | Bloomberg via Getty Images
Digital currency exchange Kraken will close its operations in Japan next month in one other sign of consolidation in the battered crypto industry.
In blog post on Wednesday, Kraken said it could stop providing cryptocurrency trading services through its Japanese subsidiary Payward Asia and deregister with Japan’s financial services agency on January 31, 2023.
That is the second time Kraken has left the Japanese market. The primary was in 2018 when it closed 4 years after initially starting operations in 2014. It reopened nationally in 2020 after obtaining registration from the regulator.
Kraken said the move was “a part of Kraken’s efforts to prioritize resources and investments in those areas that align with our strategy and can put Kraken in the most effective position for long-term success.”
He cited a mix of “current market conditions in Japan” and “a weak crypto market worldwide” as reasons for his decision.
Japanese customers may have until January 31 to withdraw their fiat and crypto holdings from the Kraken platform, the corporate said. They’ll have the choice to withdraw their cryptocurrencies to an external wallet or withdraw and transfer Japanese yen to a domestic checking account.
Starting January 9, users in Japan will not have the option to deposit funds into their accounts, although the trading features will remain in place so that they can trade their balance for an asset of their alternative.
In accordance with CoinMarketCap data, Kraken is one in every of the world’s largest cryptocurrency exchanges, processing $408.9 million in trading volume per day.
Together with many other major players in the industry, it has been deep in cost-cutting mode recently. On November 30, the corporate cut 1,100 jobs, or 30% of its workforce, which it said was vital to “adjust to current market conditions”.
Crypto has been plagued with all varieties of scandals this yr, which has been dubbed the “annus horribilis” in the industry.
The pain began with the collapse of Terra, once a $60 billion stablecoin operator, followed by several other dominoes with exposure to the project, including crypto lender Celsius and hedge fund Three Arrows Capital.
The bankruptcy of cryptocurrency exchange FTX is the industry’s most notable failure to this point. Its controversial co-founder and former CEO, Sam Bankman-Fried, has been released on bail pending trial for fraud and other criminal charges.
Prices bitcoins and other digital currencies fell as investors broke the market and rising rates of interest put pressure on speculative assets like tech stocks. Bitcoinsthe world’s largest token, has fallen greater than 60% this yr.