Kraken, a global cryptocurrency exchange, has ceased operations in Japan for the second time. This was due to a drain on the cryptocurrency trading platform’s resources, due to the “weak crypto market” in the country.
Kraken stock exchange announces the closure of its offices in Japan
Cryptocurrency exchange Kraken announced today, Wednesday, December 28, that it will close its offices in Japan. It added that it would also cancel its registration with the Financial Services Authority as part of its ongoing efforts to “prioritize resources” and investments.
Notably, Payward Asia Inc., a subsidiary of cryptocurrency trading firm Kraken, operates the exchange’s Japanese outlet.
The second closing of the cryptocurrency exchange in Japan
It is noteworthy that the cryptocurrency exchange Kraken previously closed the Japan office, which had been active since 2014, in April of 2018, and this was to focus on expanding in other geographic regions around the world.
In October 2020, the subsidiary plans to relaunch in Tokyo, Japan, with spot trading on five major assets and future growth ambitions. However, today it is again closed.
Cryptocurrency exchange Kraken has assured its clients that they will be able to withdraw their funds from the exchange by January 31, at the latest, marking the conclusion of the second cycle.
Users have the option to withdraw their cryptocurrency holdings to an external wallet or exchange their cryptocurrency wallet for Japanese yen and deposit the funds into a Japanese bank account. There will be no withdrawal cap by next January, and a measure to recover the staked ether will be announced shortly thereafter. Once next January 9 arrives, deposits will not be allowed, while trading will continue as normal.
Kraken’s platform prioritizes cost reduction
In recent months, Kraken appears to have prioritized cutting costs. The Kraken exchange said on November 30 that the company had made one of its “toughest decisions” by laying off 1,100 workers worldwide, or 30% of its total staff, due to the current economic climate.