Kraken to Cease Operations in Japan, Cites a Weak Crypto Market

Kraken will quit Japan for the second time as the exchange struggles to keep up with the weak crypto market.

Kraken to Cease Operations in Japan Citing a Weak Crypto Market

Crypto exchange Kraken has announced its intention to quit operations in Japan and de-register from the Japan Financial Services Agency (JFSA), citing a weak crypto market globally. 

Kraken Will Quit Operations in Japan 

In a Wednesday blog post, the U.S.-based crypto exchange announced that its decision to stop operating in Japan was prompted by “current market conditions in Japan in combination with a weak crypto market globally.” 

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Per the announcement, users have until January 31st, 2023, to withdraw their fiat and crypto holdings from the exchange. The exchange has assured users that it is “fully funded to ensure all affected clients can withdraw their assets.”

Kraken will halt its deposit functionality on January 9th. The exchange will finally cease operations in Japan by deregistering from the nation’s Financial Services Agency on January 31st. 

Japan is Becoming a Crypto-Friendly Zone

Although Kraken explained that the move was to channel resources and investments to ensure the long-term stability of the exchange, it comes amidst a wave of crypto-friendly policies in the East Asian nation. 

The FSA recently announced that the ban on foreign-issued stablecoin could be lifted soon. Japan also looks to ease its 30% tax on crypto gains, followed by issuing licenses to crypto issuers, including Binance.

On the Flipside

  • Despite pulling out of Japan, Kraken has continued to expand its offerings, launching its NFT marketplace after last week’s launch of Kraken Pro.

Why You Should Care

Kraken’s exit from Japan is an attempt to cut operational costs to cope with the winter ravaging the crypto industry.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Milko Trajcevski

Milko Trajcevski is a DailyCoin news reporter, mainly focused on Ethereum (ETH), Cardano (ADA), and their founders (Vitalik Buterin and Charles Hoskinson). Milko is an avid follower of crypto and blockchain technology and has written thousands of articles on the subjects. He finds joy in transforming complex issues into written content that anyone can understand. Milko has used and analyzed numerous exchanges, such as Coinbase, FTX, and Binance. He also closely follows all of the latest news around the largest decentralized exchanges (DEXs). Location: Skopje, Macedonia