Kraken Exchange Announces Ceasing of Operations in Japan

  • The exchange will close its offices in Japan and remove its registration with FSA.
  • Payward Asia Inc., a Kraken subsidiary, manages the exchange’s Japanese outlet.

Kraken, a global cryptocurrency exchange, is ceasing operations in Japan for a second time. Blaming a drain on its resources caused by the country’s “weak crypto market.”

Kraken announced in a blog post on December 28 that it would be closing its offices in Japan. And removing its registration with the Financial Services Agency as part of its ongoing efforts to “prioritize resources” and investments.

Payward Asia Inc., a Kraken subsidiary, manages the exchange’s Japanese outlet. Its Japanese business, which had been active there since 2014, ceased operations in April 2018. To concentrate on expanding into “other geographical areas.”

Conclusion of Second Start

The subsidiary planned to relaunch in Tokyo, Japan, in October of 2020. With spot trading on five key assets and future growth ambitions. Kraken has assured its customers that they will be able to withdraw their money from the exchange by January 31st at the latest, marking the conclusion of the second iteration.

Users have the option of withdrawing their cryptocurrency holdings to an external wallet or exchanging their cryptocurrency portfolio for Japanese yen and depositing the funds into a Japanese bank account. There will be no withdrawal caps in place come January, and a procedure for recovering staked Ether will be made public soon thereafter. Once January 9th arrives, deposits will no longer be allowed, while trading will continue as usual.

In recent months, Kraken seems to have prioritized cost reduction. Kraken said on November 30 that the company has taken one of its “hardest decisions” by laying off 1,100 workers worldwide, or 30% of its total staff, due to the current economic climate.

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