Crypto exchange Kraken to close Japan operations after mass job cuts

Digital currency exchange Kraken will close its operations in Japan next month.

In a blog post Wednesday, Kraken said it will suspend cryptocurrency trading services through its Japanese subsidiary Payward Asia on January 31, 2023 and will be deregistered from Japan’s Financial Services Agency.

This is the second time the Kraken has withdrawn from the Japanese market. First he was in 2018 and he closed four years after first establishing the business in 2014. It reopened in the country in 2020 after securing registration from regulators.

Kraken said the move “aligns with our strategy and is part of Kraken’s commitment to prioritizing resources and investments to best position Kraken for long-term success.” .

He cited a combination of “current market conditions in Japan” and “weak global crypto markets” as the reasons behind the decision.

Japanese customers have until Jan. 31 to withdraw their holdings of fiat and cryptocurrencies from the Kraken platform, the company said.You can choose to withdraw your cryptocurrency to an external wallet or cash out and transfer Japanese yen to a domestic bank account.

After January 9th, users in Japan will not be able to deposit funds into their accounts, but trading functionality will remain intact so that balances can be converted into any asset.

According to CoinMarketCap data, Kraken is one of the world’s largest cryptocurrency exchanges, processing $408.9 million in trading volume per day.

Like many other major industry players, it’s been deep in cost-cutting mode lately.On Nov. 30, the company cut 1,100 jobs, or 30% of its workforce. The company said this was a necessary step to “adapt to current market conditions.”

Cryptocurrencies have been plagued with scandals of all kinds this year, dubbed the industry’s “terrifying year.”

The pain began with the collapse of Terra, once a $60 billion stablecoin operator, and then several others exposed to the project, including cryptocurrency lender Celsius and hedge fund Three Arrows Capital. The domino toppling continued.

The bankruptcy of crypto exchange FTX is the most notable industry failure to date. Controversial co-founder and former CEO Sam Bankman-Fried has been released on bail pending trial for fraud and other criminal charges.

the price of Bitcoin Other digital currencies fell as investors turned sour in the market and rising interest rates put downward pressure on speculative assets such as tech stocks. BitcoinThe world’s largest token, , has fallen more than 60% so far this year.